Bitcoin fell to a single-week low on Monday, and it dragged down other major cryptocurrencies in the wake of the dramatic fall in FTX was still reverberating across the market.
Key important points for before invest in Bitcoin
- Bitcoin fluctuated around a week-long low on Monday. Other major cryptocurrency markets fell sharply due to the dramatic fall in FTX continues to be felt throughout the market.
- The cryptocurrency market has dropped in the past two weeks as problems at the central exchange FTX were exposed.
- Since Nov. 6 (the day that Binance President Changpeng Zhao said his exchange would sell its FTT tokens the cryptocurrency market has lost nearly $260 billion worth of value.
Bitcoin was last down 3.2 percent to reach $15,979.97, according to Coin Metrics. Earlier in the day, it hit a one-week low of $15,879. Ether decreased 5.6 percent to $1,108.39.
The cryptocurrency market has dropped in the past two weeks due to issues with a significant exchange, FTX surfaced.
Since Nov. 6, which was the day that Binance President Changpeng Zhao said his exchange was going to sell its FTT tokens, The crypto market has lost nearly $260 billion worth of value.
FTT is the official cryptocurrency used by FTX’s exchange. Zhao’s decision sells FTT led to the downfall of FTX, which has declared bankruptcy. Binance was a competitor to FTX.
The new CEO of FTX, John Ray, said on Saturday that the exchange plans to sell or restructure its global operations.
The company owes its biggest creditors around $3 billion.
The cryptocurrency market is still on edge due to uncertainty about how the FTX story will be resolved and if there will be a further spread throughout the market.
“The market is in wait and watches mode to see whether there are any other entities that could fall as a result of being exposed to FTX,” Vijay Ayyar, Vice President of international development, corporate and corporate for crypto exchange Luno, said to CNBC.
Investors have been in the news due to notable cryptocurrency failures this year, which have had dramatic ripple consequences.
This year, the demise of terraced, a kind of cryptocurrency known as an algorithmic stablecoin, has had knock-on effects on several companies and led to the end of significant hedge funds like Three Arrows Capital.
Amid the chaos that followed the FTX collapse, approximately $477 million of cryptocurrency assets were taken out of the exchange accounts as a result of an alleged hack, according to the Blockchain analytics company Elliptic. FTX acknowledged the existence of “unauthorized transactions” had occurred; however, they did not provide details about the amount of money transferred.
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Blockchain analytics company Chainalysis confirmed on Sunday those funds stolen “are on the move.”
The hacker has started to dump some of their ether holdings into other investments according to the public blockchain information of the account that is believed to be associated with the individual. This could be the reason that ether has fallen more than bitcoin.
“It adds a direct selling pressure on ethereum, and it affected bitcoin and other tokens,” said Yuya Hasegawa, a crypto market analyst for Japanese cryptocurrency exchange Bitbank.
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