The cryptocurrency market continues to decline as funds are withdrawn

The cryptocurrency market continues to decline as funds are withdrawn
The cryptocurrency market continues to decline as funds are withdrawn

Cryptocurrency prices suffered Monday amid the ongoing crisis triggered by the collapse of Sam Bankman-Fred’s once-mighty FTX empire.

The largest cryptocurrency, Bitcoin, has fallen about 2.5% over two days, while second-placed Ethereum is down about 6%. The meme cryptocurrency Dogecoin – one of the most speculative assets in an already active digital arena – fell 12%.

Concerned officials dig through the wreckage of the FTX bankruptcy and discover that $3.1 billion is owed to major creditors. The amount of money owed raises fears of further collapses among digital asset groups.

Cryptocurrency lending platform BlockFi could be next, according to people familiar with the matter who said last week that it was preparing to file for bankruptcy within days.

FTX bankruptcy surprises put pressure on cryptocurrency lenders

Urgent reminder

“The FTX issues are really an urgent reminder of the need for regulatory clarity and a real regulatory framework for cryptocurrencies,” Christian Catalini, founder of the MIT Cryptoeconomics Lab, told Bloomberg TV.

He added that the hype and speculation around minting and trading cryptocurrencies “has been a huge distraction from building real products and services that reach consumers and solve real problems.”

Ethereum has outperformed Bitcoin over the past few trading sessions in part because of speculation that some of the $663 million that was withdrawn from FTX when it slid into bankruptcy is now exiting the cryptocurrency.

Finally, the person who hacked FTX last week emerged as one of the largest holders of Ethereum in the world, with $288 million in cryptocurrency holdings.

Blockchain technology firm Chainalysis said in tweets on Sunday that the funds taken from FTX are “in motion”, and that some of them have been switched from Ethereum to Bitcoin, likely as part of an exchange. Try to “take the winnings”.

The article is in Arabic

Tags: cryptocurrency market continues decline funds withdrawn

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