Last Updated on November 14, 2022 by Bitfinsider
The demise of the cryptocurrency exchange FTX dealt a devastating blow to the whole crypto industry. As Bitcoin falls more than 5% and dips below $16,000 for the first time in two years, the wider cryptocurrency market is once again under selling pressure.
The BTC is now selling at $15,970 and has a market worth of $306 billion, touching a new low for 2022. The overall cryptocurrency market has lost more than $200 billion during the past week. Market liquidity has been drying up quickly recently, according to on-chain statistics from Coinglass, which could be cause for concern moving forward.
Users’ confidence in centralized platforms has significantly declined in the wake of the most recent collapse of the cryptocurrency exchange FTX. Under 2.3 million BTC are currently held across all exchanges, which is the smallest amount since 2018. On-chain college reports, using information from Glassnode, said: “80.8k BTC have left exchanges over the last 4 days. People are clearly taking their BTC off exchanges to minimize counter party risk. Short-term exchange data can fluctuate. I imagine this trend will continue as more people take custody of the asset and avoid trusting a 3rd party.”
Solana is most affected by the FTX collapse
Since the crisis started, FTX’s sibling company Alameda Research has been selling a significant portion of its Solana (SOL) holdings. Because of this, the Ethereum rival has experienced the biggest correction among all altcoins, falling more than 60% in a single week.
As of the time of publication, SOL is down another 13%, trading at $12.59, with a market capitalization of $4.5 billion.
Altcoins are seeing a deeper correction as of publication. Both Dogecoin (DOGE) and Polygon (MATIC) have declined by almost 13%. Ethereum (ETH) is now back below $1,200 after a 7% decline.
Hardware wallets are safe and secure devices that can be used offline. They keep your cryptocurrency offline, making it impossible for you to be hacked. To find out more on the leading hardware wallets, you may view our reviews here: Ledger & Trezor
Disclaimer: The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, legal, tax or other advice. Investing in or trading cryptocurrency or stocks comes with a risk of financial loss.