Ongoing turmoil and disastrous news continues to haunt cryptocurrencies, causing a $1.4 trillion loss in the value of the broader crypto market this year. The sector has been plagued by many problems, from failed projects, to a liquidity crunch that was exacerbated by the fall of the intriguing FTX, once one of the largest exchanges in the world.
Meanwhile, Bitcoin reached its lowest level in two years, and the world’s most valuable cryptocurrency was trading Tuesday at $15,480, its lowest value since November 11, 2020, according to CoinDesk data. Since then, Bitcoin has rebounded to around $15,728. In the same vein, Ether was trading down 3.5% at $1089 this morning.
FTX, a company that was previously valued at $32 billion prior to the latest scandal, is reported to have more than 1 million creditors and debtors of more than $3 billion. Founder Sam Bankman Fried stepped down as CEO earlier this month and was replaced by John Ray, who is looking to sell or restructure his global FTX empire.
However, cryptocurrency prices remain under pressure as investors fear that the latest crash could contaminate the entire market. (agencies)