CRYPTO

Over 69K investors burnt as Bitcoin dips below $16K


Bitcoin experienced significant losses due to the FTX collapse, falling from over $21,000 to a two-year low of $15,500 last week. 

It made an effort over the weekend to make up ground, briefly rising to $17,000 before falling below $16,000 on Monday. 

69,329 traders were liquidated on the last day of the week, totalling $187 million in liquidations. The greatest single liquidation order, worth $7.05 million, was made on Bitmex. 

Why Bitcoin underperformed: Most changes in the price of bitcoin were caused by fresh information about FTX, Alameda, or Sam Bankman-Fried, the man behind both companies. Similar to how they were, projects that were closely tied to them suffered much more. 

In the instance of Solana, businesses like Tether attempted to separate themselves. In the end, this droves SOL’s price further. 

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Ether’s underperformance: Ether also underperformed Bitcoin partly due to rumours that part of the $663 million that FTX lost as it went bankrupt is now being transferred out of the token. 

With a haul of around $288 million, the individual or organization that raided FTX became one of the greatest holders of Ether in the world last week. 

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Chainalysis, a blockchain company, claimed in tweets on Sunday that money taken from FTX “is on the move” and that some of it were moving from Ether to Bitcoin, perhaps to “payout.” 

More on Bitcoin: Over the past two days, Bitcoin has lost around 4% of its value, while Ether, which is ranked second, has lost about 7%. A judge of the most speculative inclination in an already risqué digital playground, the meme token Dogecoin, is down 11%. 

Although last week was significantly less volatile in terms of price changes than the previous one, which saw the decline of one of the biggest crypto exchanges, it was still quite eventful due to new revelations about FTX, Alameda, and other involved parties. 

Latest with FTX: In the meantime, administrators sifting through the remains of the FTX bankruptcy have found that the largest creditors are owed $3.1 billion. Concerns that more digital asset businesses would fail are being fueled by the size of the money still owed. 

What you should know: Since the FTX fallout started, we’ve seen cryptocurrency lenders BlockFi and Genesis Global Capital halt withdrawals from their platforms due to exposure to FTX, and Winklevoss-owned cryptocurrency exchange Gemini shut down its Gemini Earn program, which offered customers yield through, you guessed it, cryptocurrency lending through Genesis. 



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