December 6, 2022

Bitcoin Trades Below $16,000 As Dogecoin Tanks By 11%

In cryptocurrencies, the world’s largest digital token Bitcoin’s price today was trading more than 4% lower at $15,973. This catches it slipping below the $16,000 mark. On the other hand, Ether, the coin linked to the ethereum blockchain, also plunged by more than 8% to $1,118.

The Bitcoin And Ethereum Situation

The global crypto market cap today remained below the $1 trillion mark. It over 5% lower in the last 24 hours to $828 billion. This happened as cryptocurrency prices continued to struggle in the ongoing crisis. One sparked by the downfall of Sam Bankman-Fried’s once powerful FTX empire.

“Bitcoin, Ethereum, and most cryptocurrencies continued to trade low due to the intense selling pressure over the weekend.  If buyers can push the price of BTC above the overhead trendline, we might see an upward trend. Meanwhile, Ethereum also dipped by 8% over the weekend. If the selling pressure does not subside, we may see ETH drop to $1,080. ETH will likely remain under the bearish threat until the price remains below the trendline,” said Edul Patel. Edul is the CEO and Co-founder of global crypto investment platform Mudrex. 

Meanwhile, dogecoin price today was trading over 11% lower at $0.07. Shiba Inu was also down over 7% at $0.000008. Other crypto prices’ today performance also declined. Binance USD, Polkadot, Solana, Polygon, ApeCoin, Cardano prices were trading with cuts over the last 24 hours.

The Impact Of The FTX Situation

The implosion of FTX has rippled across the industry. An event that is hobbling liquidity at firms with exposure to what was once one of the biggest crypto exchanges. In the process this is prompting investigations by regulators in several countries.

FTX is the latest cryptocurrency company this year to come under financial pressure as crypto assets have collapsed in value. Other failures include Celsius, a bank-like company that took in crypto deposits in exchange for yield. Also involved is an Asia-based hedge fund known as Three Arrows Capital.

Parth Chaturvedi, Crypto Ecosystem Lead, CoinSwitch said this. “Last week witnessed the collapse of one of crypto’s most recognised brands FTX. This results in a massive overhang on the entire industry and impacted investor confidence. As FTX and Alameda declared bankruptcy, legacy investors like Sequoia, Temasek and even Pension funds got burnt. Meanwhile an expected 1 million creditors are staring at a long drawn court battle. The contagion risk has only started emerging as the biggest lending desk in crypto, Genesis, halted credit withdrawals.”

“Several regulatory bodies across jurisdictions have begun investigations on SBF and his aides. This is done with the expectation that this episode will hasten global coordination in developing a more robust regulatory framework. One that will better serve crypto assets and related entities. Till these guardrails are established, institutional capital is expected to wait on the sidelines. The silver lining was that Global Macro Backdrop improved last week.” The above statement was by Parth Chaturvedi.

Hope For Bitcoin On The Broader Crypto Markets?

Broader crypto markets have traded in a narrow range, after the massive 20% correction in the week before. This saw it settling at market capitalization well below $900bn. Bitcoin continues to struggle around $16.9k, while Ethereum is trading around $1.2k. The biggest losers have been FTX’s exchange token FTT (falling another 75% and trading below $2) and Alameda backed SOL. SOL now has a market capitalization of under $5billion and is behind SHIB in token listings.

Augustine Ojeh

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