Bitcoin price at a new annual low: bloodbath caused by FTX crash
Bitcoin price hits annual low in 2022
Only in September did the Bitcoin price reach a new annual low of less than 18,500 US dollars. Now the largest cryptocurrency is falling even lower. The main reason for the sudden losses is likely to be the collapse of the second largest crypto exchange.
FTX falls apart after competitor Binance triggers mass panic in the market. In the meantime, the market leader presents itself as the great savior , taking over its ailing competitor and thus solving its illiquidity problems.
These events seem to trigger great distrust among investors. With a price low of 17,266 US dollars, the Bitcoin is now reaching its all-time low within the last year. Courses of this type were last seen in November 2020.
Crypto market bloodbath: Market falls below 900 billion
It has been almost two weeks since the crypto market was able to recapture the trillion value . At the beginning of the month, some cryptocurrencies were even able to record significant gains.
Some experts even suspected the emergence of a bear market rally . The crypto market broke away from the negative sentiment of the classic financial market and was able to write green numbers despite new increases in the US key interest rate, while the stock markets slumped again.
Now, the combined crypto market is even falling well below the $900 billion level. Down almost 11 percent on the 24-hour trend, the value at press time is around $876 billion.
Ethereum is among the top losers
The bearish mood is particularly strong among Ethereum investors. ETH is among the top losers in the top 100. Only 15 of the 100 largest cryptocurrencies have seen even sharper price falls than ether.
Ethereum is currently trading at $1,220 after the smart contract platform lost almost 22 percent of its value.
Solana and FTT fall dramatically
Instead, this role is now due to the Dogecoin , which has lost almost a third of its last value with a minus of 30 percent.
The problem: Solana is closely intertwined with FTX. The crypto exchange acted as a kind of patron for the project and thus ensured a lot of trust in a project that otherwise mainly impresses with recurring failures .
With FTX most likely disappearing from the scene soon, trust in Solana is now plummeting. After consecutive losses of 37 percent, the currency is only the 11th crypto by market cap and is trading at $19.40.
Only two cryptos are losing more in the top 100: euphoric restarter Aptos and FTX Token (FTT).
The FTX Token (FTT) price falls by around 83 percent. There is no end in sight to the losses. In fact, it is questionable how the token will continue. A continuation would be conceivable if Binance continues to run the exchange as a subsidiary. But then probably depending on the BNB ecosystem.
Otherwise, an exchange from FTT to BNB would be conceivable.
Has the crypto market bottomed out?
The year 2022 brought many shocks to the crypto market. Investors often ask themselves: has the crypto market finally bottomed out? Cardano founder Charles Hoskinson provides a hypothetical answer to this question .
I think this might be the bottom point. One of the last we deal with. It’s hard to predict how bad it will be, and it could certainly get very bad.
Explains the programmer. He continues:
There aren’t many companies left that are like FTX or Alameda or like Three Arrows Capital and so on. At least in this cycle I really hope that this will be the last event of this kind.
Hoskinson criticizes industry companies that take excessively speculative positions and thus threaten to collapse quickly if their plans don’t work out.
At the same time, however, he also suspects that the FTX slump will again lead to a cascading effect that, like the Terra crash in spring , will sweep other companies with it.