What to expect from the market after FTX crash

After flirting with $17,000k on the holiday Tuesday (15th), along with the release of a lower than expected US output price índice for October. Bitcoin (BTC) is losing ground, returning to trading at around $16,000,000 this Wednesday morning (16), reflecting the still uncertain environment of the sector and doubts about which companies are really exposed to the potential domino effect of the bankruptcy of the FTX last week.

During 7 am, the cryptocurrency was trading at $16,747 over the past 24 hours, with Ethereum (ETH) down 2.4% to $1,231, the current worst performer among the most valuable cryptos. Looking at the top 100 by market capitalization, the biggest drop is Trust Wallet (TWT), the eponymous wallet token, which is down nearly 20% after a recent gain of 80%.

FTX

On the positive side, the highlight is Chiliz (CHZ), which rose 11.9% this Wednesday, four days before the start of the World Cup in Qatar. Chiliz is the blockchain that issues more fan coins closely related to football.

Owned by several national teams, including Brazil. Investors still fear that other exchanges will follow the same path as FTX. According to the Wall Street Journal, the Blockfi lending platform, which was rescued by the brokerage months ago, is also declaring bankruptcy, likely using the same tool similar to bankruptcy in Brazil.

Blockfi denied rumors that most of its resources were held in FTX, but admitted this Monday (14) that in addition to keeping deposits on the platform, it also had a credit line outside the FTX that it did not use, except for obligations payable by the broker.

According to Edward Moya, a senior analyst at Oanda, the possible bankruptcy of BlockFi could bring the next test for the cryptocurrency market. “The next domino to fall seems to be BlockFi,” described by Moya.

BlockFi

“FTX contagion was expected to affect BlockFi, although it recently denied that most of its funds were held in FTX.” According to a report published yesterday by cryptocurrency exchange Coinbase, the collapse of the FTX has stopped the positive movement of cryptocurrencies and is expected to prolong the “crypto winter” (a period of low prices).

“The combination of hash rate growth, energy costs, and now lower BTC prices is creating increasingly stressful financial conditions for miners,” analysts David Duong and Brian Cubellis said in a signed note. Hash rate is a measure of computing power dedicated to Bitcoin mining. As the rate increases, the difficulty of producing cryptocurrency also grows.

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