Cryptocurrency prices faced staggering losses this week as they reeled from FTX’s liquidity crisis and its bankruptcy filing on Friday. Bitcoin is down 25% since Sunday to close at a two-year low, while Ethereum fell 32% to its lowest level since June. There has been a whirlwind of headlines in recent days surrounding what was the fourth largest crypto exchange. From FTX’s costly relationship with sister trading firm Alameda Research, and Binance backing out of its proposed acquisition, to FTX’s former CEO Sam Bankman-Fried’s resignation and new investigations into the crypto exchange. Get the full FTX bankruptcy saga with this week’s crypto wrap-up.
Also, be sure to check out this week’s coverage of cryptocurrency ETFs like BITQ, BLOK, and BITS.
Click here for the latest cryptocurrency prices and news. And if you’re new to the world of Bitcoin, Ethereum, blockchain and more, stop by our What Is Cryptocurrency page.
Cryptocurrency News: Price Action
Bitcoin fell below $16,700 on Friday after FTX announced it was filing for bankruptcy. The world’s largest crypto turned over $18,100 on Thursday after the CPI report, after nearly regaining the $21,000 level the previous weekend. This week’s losses pushed Bitcoin to its lowest level since November 2020. It fell below technical support around $18,814, and has traded between that level and a ceiling around $23,460 in the past three months, according to ARK Invest’s monthly Bitcoin report.
Ethereum fell to around $1,250 on Friday afternoon, stopping from its rebound above $1,300 on Thursday. The second largest crypto sank as low as $1,100 during the week after nearly hitting $1,650 last weekend.
Cryptocurrency Prices Heat Map:
Digital asset investments are extremely volatile. While cryptocurrency fundamentals and technical indicators may vary, investors should focus on the same key objectives. First, stay protected by learning when it’s time to sell, cut losses, or take profits. Second, prepare to profit if the cryptocurrency starts to rise.
Despite their initial promise, cryptocurrencies have not acted as a hedge against inflation. Instead, they have trended with the broader indices. Read The Big Picture and Market Pulse to track daily market trends.
See IBD’s best cryptocurrencies and crypto stocks to buy and watch page to help navigate the world of digital asset investing.
Want a deeper dive into crypto? Check out What is Cryptocurrency? explanatory page.
FTX files for bankruptcy
FTX officially filed for bankruptcy and CEO Sam Bankman-Fried resigned in the morning. The company was unable to raise funds to fill the $10 billion gap owed by sister trading firm Alameda Research.
FTX faces investigations
Meanwhile, FTX faces a regulatory investigation into its handling of customer funds and lending practices.
Binance goes on an acquisition spree
On Wednesday, Binance announced it would walk away from its proposal to buy FTX, the Wall Street Journal reported. Binance had previously announced that it signed a non-binding letter of intent to purchase FTX’s non-US operations in an effort to address FTX’s liquidity crunch.
One in five US consumers bought or sold Bitcoin when crypto markets crashed earlier this year, a new report shows.
Read more cryptocurrency news
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