Bitcoin faces the worst week post FTX's collapse
London: 21 August 2023 (TraderMade): Bitcoin has been the most popular cryptocurrency since its inception. Many ups and downs in the cryptocurrency market may drive Bitcoin prices. Let us reveal how the FTX collapse impacts.
On 11 November 2022, FTX announced Bankman-Fried's resignation from their CEO's position. Similarly, on 17 November 2022, FTX officially collapsed along with its 101 debtors. These debtors were included in the Chapter 11 bankruptcy filing.
FTX was valued at $32 billion and had $8 billion as liabilities. The popular crypto exchange then could not pay the debts to close to 1 million creditors.
The Decline in the BTC Bitcoin (ticker symbol BTC) traded at $
29,912.10 on 21 July 2023. It continued an upward trend till 14 August 2023- at $ 29,405.40. However, it has experienced the worst week since the FTX collapse. As of 21 August 2023, BTC is trading at $ 26,037.00, a 12.95% drop ($ 3,875.10).
The court battle between Grayscale and the SEC- US regulators is another reason for this worst weekly decline. Experts were optimistic that the court decision may support the Bitcoin price. However, the chaos on Thursday brought the prices further down.
It is important to note that Bitcoin slipped to $ 15,000 last November following the FTX collapse.
The Worst Week for Other Cryptocurrencies Too Following an update
that the SEC may approve ETFs holding Ethereum Futures, the Ethereum (ETH) dropped by 10% last week. The position was better than Bitcoin due to the positive sentiment. The second-largest cryptocurrency hit a two-month low.
Other cryptocurrencies, like DOGE, MATIC, XRP, and SHIB, faced a 10% to 20% decline last week.
In-depth market research and analysis are crucial to ensure well-informed decisions in highly-volatile crypto markets.
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