Bitcoin prices remained relatively low on Monday, while other major cryptocurrencies experienced sharp declines. This is likely due to the ongoing fallout from the dramatic collapse of FTX.
Bitcoin was down 3.6% to trade around $15,990.89 at 3:40 a.m. ET, according to CoinDesk data. Ether, the second-largest cryptocurrency by market value, fell 7% to $1,120.61.
The cryptocurrency market has been under pressure over the last two weeks as problems at major exchange FTX have come to light. FTX has been facing issues with its liquidity, and this has caused concerns among investors. The market has also been affected by the ongoing coronavirus pandemic, which has led to a decrease in demand for cryptocurrencies.
Since Nov. 6, when Binance CEO Changpeng Zhao said his exchange would liquidate its FTT tokens, the crypto market has lost more than $260 billion in value.
FTT is the native token of FTX's crypto exchange. Zhao's decision to sell FTT sparked the collapse of FTX, which has since filed for bankruptcy. Binance was a rival to FTX.
FTX's new CEO John Ray said on Saturday that the exchange is looking to sell or restructure its global empire. This comes as the company looks to streamline its operations and focus on its core businesses.
The company's largest creditors are owed a total of $3 billion.
Crypto markets are still in a state of flux following the FTX saga. It is unclear how the situation will resolve itself, and whether there will be any further fallout across the industry. This has investors and traders on edge, as they wait to see what will happen next.
"The market is waiting to see if any other companies will be affected by FTX," said Vijay Ayyar, vice president of corporate development and international at crypto exchange Luno.
Investors have been burned by a number of high-profile crypto failures this year, which have caused significant ripple effects. These failures have led many investors to lose faith in the crypto market, and the effects have been felt throughout the industry.
Strategist says Chinese tech stocks, like Alibaba, are a clear buy right now. They are incredibly cheap and offer a great opportunity for investors.
Bank of America has released a report saying that it believes the case for investing in chip stocks is "compelling." The bank has picked its top stocks to buy in the sector.
Wood added to her holdings in Coinbase and other crypto stocks amid the fallout from FTX.
Earlier this year, the collapse of terraUSD, a type of cryptocurrency known as an algorithmic stablecoin, had ripple effects on a number of companies and contributed to the fall of major hedge fund Three Arrows Capital.
According to blockchain analytics firm Elliptic, around $477 million in crypto assets were drained from FTX's accounts in a suspected hack. FTX admitted that "unauthorized transactions" had occurred, but did not give details on how much money was moved.
Chainalysis, a blockchain analytics firm, said on Sunday that the stolen funds are "on the move." The firm did not provide any details on where the funds are going or how they are being moved.
The person suspected to be behind the hack has started selling off their ether, according to public blockchain records. This could be one reason why ether is falling more sharply than bitcoin.
"The direct selling pressure on Ethereum obviously affected Bitcoin and other tokens," said Yuya Hasegawa, crypto market analyst at Japanese crypto exchange Bitbank.
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