The collapse of FTX sends the price of Bitcoin back into the red
Bitcoin price was recently trading at about $16869, down nearly 7%. The largest cryptocurrency by market capitalization was still hovering near $17,000 when FTX, the once-widely revered exchange, filed for bankruptcy after a fruitless search for a rescuer. The ongoing fallout for an already shell-shocked crypto sector remains uncertain.
BTC/USD 4-hour chart | Source: TradingView
Bitcoin Price Returns to Red, Tumbling 7% on FTX Collapse
FTX crashed. Cryptocurrency prices tumbled on Friday as fretful investors returned to their defensive postures earlier in the week. The collapse of FTX and the uncertainty it has brought to the industry has been another damaging blow. How damaging it will be will depend on what details appear in the coming days, but prices remain under pressure and vulnerable to further sharp declines.
Ether was recently changing hands just above $1,260, off more than 4.5%. Most other significant cryptos by market value spent their day in the red, victims of FTX contagion. FTX’s FTT token recently plunged more than 30% to approach its low perch from earlier in the week.
The Solana blockchain’s SOL token, one of the hardest-hit digital assets this week, slid nearly 12%. SOL’s decline stemmed from speculation about Solana’s close connection to Alameda Research, a trading firm founded by FTX CEO Sam Bankman-Fried. SOL was Alameda’s second-largest holding, according to Riyad Carey, a research analyst at crypto data firm Kaiko.
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