trade now
(BTC) Bitcoin News TodayAltcoinBitcoin TrendsCryptocurrencyCryptocurrency FundCryptocurrency TrendsNewsPrice AnalysisSolana (SOL)

FTX’s Fall Will Extend Cryptocurrency Bear Market – Here’s Why

We are enduring a crypto winter, and FTX’s turmoil means such narratives may persist.

The crypto space has felt the shockwave of exchange FTX’s bankruptcy. The recent debacle of a renowned cryptocurrency firm remains a big deal in the marketplace. FTX’s turmoil has impacted crypto investors and users, while exchanges remain under pressure to ensure heightened transparency and accountability as they fight to retain investor faith.

Market players had predicted an imminent BTC bottom and trend reversals before the FTX fall. Nevertheless, the exchange’s bankruptcy annulled expectations of potential market revivals, and the bearish market may last than anticipated. Here’s why investors/traders can expect extended downsides in the broad market.

FTX Bankruptcy Deteriorates Investor Confidence

Multiple reports show several leading cryptocurrency firms held cash in the now-insolvent FTX exchange. And that makes them susceptible to bankruptcy. Genesis Trading is among the companies that saw their cryptocurrency funds stuck.

November 11 Bloomberg reports show the lending firm had $175M in FTX. Also, Crypto.com is among the most hit. Nevertheless, Crypto.com exec Kris Marszalek confirmed the platform’s FTX exposure is beneath $10M, canceling speculations of financial woes.

📰  Tornado Cash Developer Receives Extended Jail Sentence

CNBC reports show Multicoin Capital lost million following FTX’s bankruptcy. Furthermore, BlockFi, which had substantial FTX exposure, bore a massive hit. Though unclear how much it lost, BlockFi has suspended withdrawals and might file for insolvency.

These represent some of the multiple affected institutions. Such developments will likely push dip-pocketed investors to consider deals and investments in more stable industries and assets. Thus, many will trim the cash allocated to crypto firms for a while.

Dampened Market Sentiment

Retail faith has met a massive setback, and crypto exchanges saw withdrawal requests increasing following the FTX announcement. Investors resorted to withdrawals as many individuals thought the market would crash.

Moreover, crypto exchanges see increased distrust. What can the market spare if leading crypto exchanges such as FTX can crash? The increasing negative sentiment in the market also confirms the continued crypto prices fall.

For instance, Bitcoin touched 2-year lows on November 21, trading at $15,480. Altcoins also suffered bearishness. For example, Solana welcomed November hovering at $38 before plunging to $11 before the month ended.

📰  World Cup: Saudi's Win Over Argentina Skyrockets The Saudis NFT Collection Up Over 380%

Negative market sentiment has sent many digital assets down by massive margins. Furthermore, no one can tell when the price fall will stop.


Tokenhell.com produces top quality content exposure for cryptocurrency and blockchain companies and startups. We have provided brand exposure for thousands of companies to date and you can be one of them too! All of our clients appreciate our value / pricing ratio. Contact us if you have any questions: info@tokenhell.com. Cryptocurrencies and Digital tokens are highly volatile, conduct your own research before making any investment decisions. Some of the posts on this website are guest posts or paid posts that are not written by our authors (namely Crypto Cable , Sponsored Articles and Press Release content) and the views expressed in these types of posts do not reflect the views of this website. Tokenhell is not responsible for the content, accuracy, quality, advertising, products or any other content posted on the site. Read full terms and conditions / disclaimer.

📰  Chainlink To Introduce Staking Protocol On The Ethereum Mainnet

📰  Thai VC Confirms $100M Takeover of Embattled Zimpex Exchange

Kevin Harper

Kevin Harper is a new journalist on Tokenhell. His content focuses on blockchain, platform reviews, and cryptocurrency news. Stay tuned for his latest and intriguing technological updates.

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button
Close
Skip to content