Bitcoin Falls to Its Lowest Level in a Week, While Ethereum Falls 7%, as the Collapse of FTX Sends Shockwaves Through the Crypto Market

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Last Updated on November 21, 2022 by Bitfinsider

Bitcoin held near a one-week low on Monday, while other major cryptocurrencies fell substantially, as the market continues to feel the effects of FTX’s precipitous collapse.

At 3:40 a.m. ET, Bitcoin was down 3.6% to $15,990.89, according to CoinDesk data. Ether decreased by 7% to $1,120.61.

In the past two weeks, the cryptocurrency market has been under pressure due to the revelation of issues at the main exchange FTX.

Since November 6, when Binance CEO Changpeng Zhao announced that his exchange would liquidate its FTT tokens, the value of the cryptocurrency market has decreased by more over $260 billion.

FTT is the native cryptocurrency of FTX’s crypto exchange, and Zhao’s choice to sell FTT precipitated the bankruptcy of FTX. Binance was a competitor of FTX.

John Ray, the new CEO of FTX, stated on Saturday that the exchange is considering selling or restructuring its global empire.

The corporation owes approximately $3 billion to its major creditors.

It is unknown how the FTX tale will conclude and whether there will be further industry-wide contagion, keeping crypto markets on edge.

CNBC quoted Vijay Ayyar, vice president of corporate development and international at cryptocurrency exchange Luno, as saying, “The market is in a wait-and-see mode to see whether there are any other organizations that could fall due to FTX exposure.”

Numerous high-profile crypto flops this year have harmed investors and produced substantial ripple effects.

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