Cryptocurrency prices faced staggering losses this week as they were reeling from the FTX liquidity crunch and its bankruptcy filing on Friday. Bitcoin is down 25% since Sunday and nearing two-year lows, while Ethereum fell 32% to its lowest level since June. There has been a whirlwind of headlines in recent days surrounding what was once the fourth largest crypto exchange. From FTX’s costly relationship with sister trading firm Alameda Research, and Binance backing out of its proposed purchase, to the resignation of former FTX CEO Sam Bankman-Fried, and further investigations into the cryptocurrency exchange . Catch up on the entire FTX bust saga with this week’s crypto roundup.
Be sure to also check out this week’s coverage of cryptocurrency ETFs like BITQ, BLOK, and BITS.
Click here for the latest cryptocurrency prices and news. And if you’re new to Bitcoin, Ethereum, blockchain, and more, check out our What is Cryptocurrency page.
Crypto News: Price Action
Bitcoin dipped below $16,700 on Friday after FTX announced that it filed for bankruptcy. The world’s largest cryptocurrency reversed above $18,100 on Thursday following the CPI report, after nearly retaking the $21,000 level over the previous weekend. This week’s losses took Bitcoin to its lowest level since November 2020. It fell below technical support at around $18,814, and has traded between that level and a high of around $23,460 for the past three months, according to ARK Invest’s monthly Bitcoin report.
Ethereum fell to around $1,250 on Friday afternoon, stalling from its bounce above $1,300 on Thursday. The second largest cryptocurrency sank as low as $1,100 for the week after nearly hitting $1,650 last weekend.
Cryptocurrency price heatmap:
Investments in digital assets are extremely volatile. While the fundamentals and technicals of cryptocurrencies may differ, investors should focus on the same key goals. First, stay protected by learning when it’s time to sell, cut losses, or capture profits. Second, be prepared to make a profit if the cryptocurrency starts to rally.
Despite its original promise, cryptocurrencies have not acted as a hedge against inflation. Instead, they have shown a trend with the broader indices. Read The Big Picture and Market Pulse to follow daily market trends.
See IBD’s Best Cryptocurrencies and Cryptocurrency Stocks to Buy and Watch page to help you navigate the world of digital asset investing.
Want a deeper dive into crypto? Take a look at What is cryptocurrency? explanatory page.
FTX files for bankruptcy
FTX officially filed for bankruptcy and CEO Sam Bankman-Fried resigned in the morning. The company was unable to raise funds to fill the $10 billion hole owed by sister trading firm Alameda Research.
FTX faces investigations
Meanwhile, FTX faces a regulatory investigation into its handling of customer funds and lending practices.
Binance walks on the buy
On Wednesday, Binance announced that it would back away from its proposal to buy FTX, the Wall Street Journal reported. Binance had previously announced that it had signed a non-binding letter of intent to purchase FTX’s non-US operations in an effort to resolve FTX’s liquidity crisis.
One in five American consumers bought or sold Bitcoin when crypto markets crashed earlier this year, a new report shows.
Read more cryptocurrency news
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