Bitcoin, Ethereum, BNB, XRP, and most other cryptocurrencies are showing significant bearish price movements this Tuesday. After a great start earlier this month and sideways trading last week, it seems the bears are again taking over the markets, pushing the global crypto market cap below $1 trillion. Let’s look at relevant Bitcoin, Ethereum, and market news affecting prices this week.
Key Points:
- Cryptocurrency markets continue to deal with bearish momentum as BTC drops to yearly lows.
- FTX’s FTT token is down by over 75% as investors fear liquidation issues with the exchange.
- The bears are in control of the markets as the global crypto market cap is down by over $100 billion in the past several weeks.
- While market conditions are stark, Ethereum holds support relatively well compared to BTC and other cryptocurrencies.
Crypto Market Update
Besides the highly bearish price action this week, causing BTC to fall to $17k briefly, the lowest it’s been this week, the FTX token has seen one of the most significant declines today, dropping by over 75% in 24 hours. The FTT token dropped from $19 to a low of $3.5 in a matter of hours, with a 24-hour trading volume of over $2.4 billion.
One reason for FTT’s ridiculous price drop is fears of a withdrawal run from FTX’s CEO Sam Bankman Fried. There are increasing concerns about FTX’s liquidity and whether or not the exchange can remain in operation despite the significant token devaluation.
In fact, the token selloff started shortly after CZ announced on Twitter that Binance would liquidate 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 🔶 Binance (@cz_binance) November 6, 2022
Since then, Binance has stepped up to purchase the FTX in a crypto bailout which would help keep FTX in operation and potentially revive it and its token.
The whole situation with FTT is disheartening, as losing over 75% in value in a single day is tragic to investors with substantial positions in the token.
It seems that the bear market is only intensifying as Bitcoin managed to hit a yearly low of $17k this week, and Ethereum is trading at the $1,300 range once again. While ETH’s yearly low was $991, ETHUSD is currently holding relatively well compared to BTC and other crypto assets.
The global cryptocurrency market cap has dropped by over $100 billion in the past several weeks, currently at $906 billion. As this year ends, we will likely see further bearish momentum as the market prepares to turn over a fresh page next year.
2022 has been a challenging year for cryptocurrencies and global markets due to worsening global economic conditions, rising gas prices, political strain in Europe, and the continuing pandemic. As the holiday season approaches, we hope the markets won’t drop substantially in the next month.
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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