Most cryptocurrencies exhibit notable bearish price movements, including Bitcoin, Ethereum, BNB, XRP, and others. It appears the bears are once again in control of the markets, driving the global market cap for cryptocurrencies below $1 trillion after a strong start early this month and sluggish trading last week. Let’s examine the significant Bitcoin, Ethereum, and market news impacting pricing this week.
Key Notes:
- As BTC slides to yearly lows, the bearish momentum on the cryptocurrency markets is still present.
- Investors are worried about FTX’s exchange’s liquidity, which has caused the FTT token to drop by almost 75%.
- Since the market valuation of all cryptocurrencies fell by more than $100 billion during the last few weeks, the bears are in charge of the markets once again.
- Despite the difficult market conditions, Ethereum holds support comparatively well when compared to Bitcoin and other cryptocurrencies.
Global Cryptocurrency Market Update
Aside from the extremely unfavorable price movement this week, which caused Bitcoin (BTC) to temporarily plummet to $17k, the lowest it has been this week, the FTX token has experienced one of the most dramatic falls today, falling by more than 75% in 24 hours. With a 24-hour trading volume of nearly $2.4 billion, the FTT token fell from a high of $19 to a low of $3.5 in a matter of hours.
Fears of a withdrawal attempt by FTX CEO Sam Bankman Fried are one factor contributing to FTT’s absurd price decline. Growing doubts exist over FTX’s liquidity and its ability to continue operating despite the token’s considerable depreciation.
The token selloff actually began just after CZ tweeted that Binance would sell its FTT holdings over reasons described as “recent revelations that have come to light.”
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 🔶 BNB (@cz_binance) November 6, 2022
Since then, Binance has stepped up to buy the FTX in a cryptocurrency rescue, helping to keep the company operating and maybe reviving it and its token.
The entire FTT situation is depressing because investors who hold sizeable positions in the token suffer tragically when their investment drops by more than 75% in value in a single day.
Since Bitcoin managed to reach a yearly low of $17k this week and Ethereum is once again trading around the $1,300 range, it appears that the bear market is just getting worse. Despite the fact that the yearly low for ETH was $991, the USD-denominated cryptocurrency is now holding up better than BTC and other crypto assets.
At $906 billion right now, the market capitalization of all cryptocurrencies has decreased by more than $100 billion during the last few weeks. We anticipate more bearish momentum as the year comes to a finish and the market gets ready to start anew in 2019.
Due to the deteriorating state of the world economy, rising gas prices, the ongoing pandemic, and political unrest in Europe, 2022 has been a difficult year for cryptocurrencies and global markets. We anticipate that the markets won’t decline significantly over the next month as the holiday season draws near.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any projects.
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