The majority of cryptocurrencies, including Bitcoin, Ethereum, BNB, XRP, and others, are exhibiting notable adverse price movements. After a strong start to the month and sideways trading the previous week, it appears that the bears are once again in control of the markets, driving the market valuation of all cryptocurrencies below $1 trillion. Let’s examine notable news affecting Bitcoin, Ethereum, and market values this week.
Summary:
- As BTC declines to yearly lows, bearish momentum on cryptocurrency markets persists.
- Investor concerns over the exchange’s collapse have caused a 75% decline in the value of the FTX FTT cryptocurrency.
- The worldwide crypto market valuation has decreased by almost $100 billion over the last few weeks, indicating that the bears are in charge of the markets.
- Despite the challenging market environment, Ethereum maintains support comparatively better than Bitcoin and other cryptocurrencies.
General Market News
The FTX token has experienced one of the biggest declines today, falling by over 75% in 24 hours. This is in addition to the highly bearish price action this week, which caused BTC to briefly drop to $17k, the lowest it has been this week. In a few hours, the FTT token fell from $19 to a low of $3.5, with a 24-hour trading volume of almost $2.4 billion.
Fears about Sam Bankman Fried, CEO of FTX, making a withdrawal run are one factor contributing to FTT’s absurd price decline. A growing number of people are worried about FTX’s liquidity and if the exchange can continue to run despite the large token devaluation.
In actuality, the token selloff began soon after CZ tweeted that Binance would sell its FTT holdings.
As part of Binance’s exit from FTX equity last year, Binance received roughly $2.1 billion USD equivalent in cash (BUSD and FTT). Due to recent revelations that have came to light, we have decided to liquidate any remaining FTT on our books. 1/4
— CZ 🔶 BNB (@cz_binance) November 6, 2022
Since then, Binance has stepped up to buy FTX in a crypto rescue, helping to keep FTX operational and maybe bringing it and its coin back to life.
The entire situation with FTT is depressing since it is unfortunate for investors who have significant stakes in the token to lose more than 75% of their value in a single day.
Since Ethereum is once again trading in the $1,300 range and Bitcoin managed to reach a yearly low of $17k this week, it appears that the bear market is just getting worse. Although ETH’s yearly low was $991, ETHUSD has been holding up better than BTC and other crypto assets lately.
The market capitalization of all cryptocurrencies worldwide has decreased by more than $100 billion over the previous few weeks and is now at $906 billion. As the market gets ready to start a new chapter next year, we’ll probably see more bearish momentum as the year comes to a close.
The year 2022 has been difficult for cryptocurrencies and worldwide markets because of the deteriorating state of the world economy, rising gas prices, the ongoing epidemic, and political tension in Europe. We anticipate no significant decline in the markets over the next month as the holiday season draws near.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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