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FTX tumbles as bitcoin drops to a 1-week low; ether drops to 7%

FTX tumbles as bitcoin drops to a 1-week low; ether drops to 7%

November 22, 2022: -On Monday, Bitcoin hovered around a one-week low, and different major cryptocurrencies decreased sharply as the impact of the dramatic. At the same time, it fell off FTX continued to ripple through the market.

Bitcoin decreased 3.6% to trade at almost $15,990.89 at 3:40 a.m. ET, according to CoinDesk data. Ether decreased by 7% to $1,120.61.

The cryptocurrency market has arrived under pressure from the previous two weeks as issues at major exchange FTX came to light.

From November 6, when Binance CEO Changpeng Zhao added that his exchange would liquidate its FTT tokens, the crypto market has lost over $260 billion.

FTT is the recent token of FTX’s crypto exchange, and Zhao’s decision to deal with FTT sparked the collapse of FTX and filed for bankruptcy. Binance was a rival to FTX.

FTX’s recent CEO, John Ray, said the exchange wants to sell or restructure its global empire on Saturday.

The company owes its most significant creditors some $3 billion. Crypto markets are still on edge as it is not clear how the FTX saga will end, and there will be further contagion all the industry.

“The market is in wait-and-watch mode to see whether there are any different entities that could decrease as a result of being exposed to FTX,” Vijay Ayyar, vice president of corporate growth and international at crypto exchange Luno.

Investors have been ignited by several high-profile crypto failures this year which have caused significant ripple effects.

In the previous year, terraced collapsed, a type of cryptocurrency known as an algorithmic stablecoin, which has knock-on effects on several companies and donated to the tumble of significant hedge fund Three Arrows Capital.

According to blockchain analytics company Elliptic, between the turmoil of the FTX collapse, nearly $477 million in crypto assets drained from the transfer accounts in a suspected hack. FTX admitted that “unauthorized transactions” occurred but did not give facts regarding money moved.

On Sunday, Blockchain analytics confirmed Chainalysis stated that the stolen funds “are on the move.”

The account’s public blockchain records are suspected of being linked to the person, and the hacker has started dumping some of their ether holdings into other assets. This could be the reason that ether is down sharply to bitcoin.

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FTX tumbles as bitcoin drops to a 1-week low; ether drops to 7%