The price of Bitcoin is now under $17,000—the first time that the asset fell that low since November 2020.
It has been a volatile week for cryptocurrency assets, as the market responds to the news that one of the largest and major exchanges in the universe, FTX, was seemingly bankrupt. The globe’s biggest digital asset exchange by volume, Binance, recently announced that it had agreed to acquire FTX in what would amount to a bailout for the firm established by Sam Bankman-Fried.
The markets have fluctuated wildly in the hours since. Bitcoin also traded for at least $18,000 but it’s now solidly under the $17,000 mark according to CoinGecko, trading for only $16,700.
You see, that is a seventeen percent dip over the past seven days.
Technical Analysis
The asset’s price is now seventy-five percent lower than its all-time high of $69,044 that it reached in November 2021.
Every other token and coin is in big trouble, as well. Ethereum, which is the second biggest crypto by market cap, is worse off than Bitcoin. The asset has dropped sixteen percent in just 24 hours—priced at only above $1.100.
On top of that, many other cryptos are in the red. On the previous day, the worst-performing assets are FTT (FTX’s native token) and SOL by Solana which has now dropped to sixteenth on the list of the most valuable cryptos by market cap.
Solana was able to stand in the top five for most of the latter half of 2021. It also stayed in the top ten until earlier this week.
FTT has fallen sixty-two percent in the 24 hours and is worth $3.44. On the other hand, SOL is present at $14—forty percent lower than it was a day ago.
On top of the cryptocurrency news, the digital asset market also has other macroeconomic problems to factor in. For example, the United States Bureau of Labor Statistics consumer price index also drops data, highlighting the newest figures on inflation in the country’s economy.
The last time hot inflation numbers were unveiled, the price of Bitcoin dropped together with the stock market.
American equities were also down as many investors make sense of the midterm elections and which party will govern Congress next week as outcomes continue to dribble in.
Going back to the FTX drama, rumors started filtering through early Wednesday that Binance was hesitant to go through with the rescue deal considering the size of the hole in the books of FTX. Late on Wednesday afternoon, Binance verified in a statement that it wouldn’t be continuing with the deal to corporate due diligence, news reports about the supposed mishandling of client funds, and supposed US agency investigations.
According to reports, the FTX CEO Sam Bankman-Fried told the investors in a call on Wednesday that the cryptocurrency exchange encountered a shortfall of about $8 billion dollars along with $4 billion required to stay solvent.
The beleaguered CEO is trying to raise more financing through debt or equity as the potential of a bankruptcy filing emerges. Market sentiment and risk assets suffered because of the FTX rescue deal falling through as more and more concerns increased about the possible knock-on effect on other crypto assets.
From a technical point of view, BTC/USD has already been rangebound since June trading between the $18,000 and $25,000 levels. Also, the moving averages are starting to point to the downside which does not bode quite well for the pair along with the new key support area lying down at $12,300.
Considering the momentum behind the fall must the pair push higher toward the $18,000 level sellers could restart their interest with $12,300 becoming a much more realistic target.
FTX is now allegedly under investigation by American authorities for how it managed customers’ deposits, according to media outlets.
Shares of publicly traded exchanges also unveiled to crypto as plunged on the developments. Robinhood shares also closed down about fourteen percent and Coinbase shares lost approximately ten percent.
Analysis Conclusion
FTX is the biggest crypto company this year to come under financial burden as crypto assets have distorted in value. Other failures include an Asia-based hedge fund referred to as Three Arrows Capital and Celsius—a bank-like firm that took in cryptocurrency deposits in return for yield.
FAQs:
Q: How much is Bitcoin now?
Bitcoin’s price today is $17,429,55 with a 24-hour trading volume of $124.47 billion.
Q: Is it good to buy Bitcoin now?
We are slightly bearish for trading bitcoin over the next two to four weeks. Expect falling prices.
Q: How much is $1 Bitcoin in American dollars?
One Bitcoin is $17,400.60.
Q: Can I buy one Bitcoin?
You can buy as little as $30 worth of Bitcoin and other cryptos.
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