According to the portal specialized in cryptocurrencies, CoinDesk, the value of bitcoin has plummeted more than 13%that is, until $15,840what it means its lowest level on record since November 2020. Even so, the data has managed to stabilize, since at the beginning of the week they were above the $20,000.
The FTX crypto token (the FTT), collapsed by more than 50% in the reports and in just one week it is worth ten times less. It is currently around $2.50. Obviously this situation has generated a excessive worry in investors.
What is this situation due to? Everything was agreed for Binance to join FTX Tradingbut the last general balance of this company, quite negative, led to it being broken on Wednesday.
Binance’s concerns are based on the permanent bankruptcy status of his rival. At first they were hopeful of being able to help FTX clients and provide them with liquidity, but the problems are growing and they are located outside the scope and interests of the company.
In the end there has been a clear Domino effect. According to the agency Bloombergin the last four days they had withdrawn $430 million in bitcoin from FTXcausing a chain reaction.
The CEO of FTX, Bankman–Friedwhich earlier this year had helped other financially troubled cryptocurrency companies, has seen FTX’s cryptocurrency generation so low that it led to a customer bank run and this one in the imminent sale to Binance.
The customers began to leave FTX motivated by the fear of not having enough capital and the crypto investors they began to see that a company affiliated with FTX, Alameda Researchwas saturated in its balance with more useless FTT tokens, which made FTX insolvent.
But Bankman-Fried did not give up and his last trick has been to ask his investors $8 million to cover all customer withdrawal requests, according to the Wall Street Journal.
The aftermath
FTX is being investigated by the United States authorities, who are rigorously analyzing the method followed to handle the customer deposits.
In general market terms, stocks exposed to cryptocurrencies have also plunged. For example, Robin Hood suffered a 14% drop in shares and coinbase of 10%.
The negative movements of the cryptocurrency market should have fueled the notorious growth of the value of the dollar as active haven, but this has remained downward. We find the explanation in the electoral results of the United States, whose political and economic uncertainty in the middle of the mandate shakes Wall Street and gives greater power to the euro.
Before FTX there have been other cryptocurrency companies in the crosshairs of the financial pressure and that they have seen how their crypto assets have plummeted sharply.
We talk about the case Celsiusa bank that received crypto deposits in exchange for yield and a hedge fund based in Asia, Three Arrows Capital.
