WMA: FTX Bankruptcy Leads to Huge Market Crash, Bitcoin Drops to $16K

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This Week’s Summary

  • The Crypto Market ends the week at a total market capitalization of $833 billion.
  • Bitcoin is down by nearly 23% following a terrible market crash.
  • Ethereum lost almost 25% over the past seven days.
  • XRP decreased by nearly 29% this past week.
  • Almost all altcoins and Metaverse projects are trading in the red.
  • FTX filed for bankruptcy, revealing over $9 billion in liquidity losses.
  • The DeFi sector increased the total value protocols (TVL) to around $59 billion.

Crypto Trends 07 – 13 November 2022: Market Analysis and Performance

The crypto market is still reeling after one of the worst weeks in recent history. A few days ago, popular crypto exchange FTX filed for bankruptcy after failing to grant customer withdrawals. Binance attempted to purchase it, but the deal fell through, leaving investors dumbfounded. Shortly after, the market crashed, losing over $200 billion in market capitalization. Moreover, most of its assets started bleeding with almost no exception.

Bitcoin was riding high above $21,000 only a week ago. However, its fortunes changed dramatically only a few days later. The king crypto suffered greatly from FTX’s downfall and saw the immediate sale of almost 80,000 bitcoins across other exchanges. As a result, its market cap dropped by nearly $90 billion in less than a day. Also, its price fell to almost $15,700 on Wednesday. Currently, BTC is trading at around $16,500 but still recording an overall 23% loss over the week.

Ethereum also dropped significantly following the mid-week market crash. The second crypto in command lost a quarter of its value, and its price fell dangerously close to the $1,000 threshold. ETH recovered slightly over the weekend but is still far from the $1,630 value it recorded last Sunday. Currently, ETH is trading at around $1,200.

Altcoins & DeFi

All the altcoins in the top 50 coins by market cap are bleeding. Most are recording double-digit losses, with some nearing triple-digit drops. For example, Solana is down by over 60%. Also, Shiba Inu, Dogecoin, and XRP are down by almost 30% after a disastrous week. Elsewhere, Cardano is down by 21%, Polkadot by 19%, and Polygon by a whopping 23%.

The Metaverse sector is in the same sentiment as the rest of the crypto market. For instance, Axie Infinity is down by almost 29%. Elsewhere, Decentraland has decreased by 35%, and The Sandbox by 32%, similar to Theta Network. Lastly, ApeCoin is closing the week on the back of a 42% value loss.

The DeFi sector added almost $3 billion to the total value of locked protocols (TVL), now at nearly $59.17 billion.

Crypto Market Analysis – What’s in the News?

  • The ex-Kraken chief called out the FTX CEO Sam Bankman-Fried for “sociopathic” behavior.
  • The British Bank Santander is planning to censor transfers to crypto exchanges.
  • A hacker moved $2.5M of Deribit loot to Tornado Cash.

Next Week’s Crypto Market Forecast

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The crypto market is struggling to recover from the FTX debacle, and it’s showing. The whole crypto industry has to deal with blows and accusations to its integrity and credibility. The FTX crash left millions of users unable to withdraw their funds, reducing the trustworthiness of all exchange-based wallets. It’s difficult to say when the market will recover as this crash could leave oozing scars for months to come.

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