Cryptocurrency Prices experienced significant losses this week due to the bankruptcy filing of FTX, a major crypto exchange. On Friday, Bitcoin tumbled 25% to near two-year lows, while Ethereum dropped 32% to its lowest level since June of last year. The fourth largest crypto exchange has been the focus of much discussion in the media lately, due to its relationship with sister trading house Alameda Research? and Binance, as well as the abandonment of the proposed buyout by FTX’s former CEO Sam Bankman-Fried. Keep up with the latest regarding the FTX bankruptcy with this week’s cryptocurrency wrap-up.
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Be sure to stay up to date on the latest news regarding ETFs such as BITQ, BLOOK, and BITS. Those new to the world of Bitcoin and Ethereum can find more information on our What Is Cryptocurrency page.
Cryptocurrency News: Price Action
On average, Bitcoin settled at $16,700 on Friday, which was a sizeable decline from the $18,100 it was trading at the day before FTX announced bankruptcy. The world’s largest cryptocurrency had made a brief recovery to the $21,000 level over the weekend, but the CPI report released this week sent prices tumbling back down to its lowest point since November 2020. According to ARK Invest’s Monthly Bitcoin report, technical support for Bitcoin is below $18,814, and the price has been trading between that level and a ceiling of $23,460 for the past three months.
Ethereum was also hit hard, with prices stalling at around $1,250 on Friday afternoon, after nearly reaching the $1,300 mark the day before. Over the weekend, Ethereum had made it as high as $1,650 before dropping to $1,100 by week two.
Cryptocurrency Prices Heat Map:
Cryptocurrency prices remain at risk of further losses this week, as the FTX bankruptcy filing continues to make headlines. Bitcoin and Ethereum were the worst affected, with Bitcoin dropping to two-year lows and Ethereum falling to its lowest level in over a decade. To stay up to date on all the latest news regarding the FTX bankruptcy saga, cryptocurrency prices, and other related topics, be sure to check out this week’s wrap-up.
Cryptocurrency investments can be a volatile opportunity, but investors should keep in mind the same goals: know when to sell, limit losses, and take profits when the market begins to rebound. Even though digital assets were intended to act as an inflation hedge, they have followed the trend of the wider indexes.
FTX, a trading company, filed for bankruptcy after being unable to raise funds to cover the $10 billion gap owed by its sister company, Alameda Research. The company will also be subject to investigations regarding customer funds and lending practices. Meanwhile, Binance withdrew its offer to buy FTX, according to the Wall Street Journal.
A new report from the US shows that one in five states saw an increase in cryptocurrency trading during the first quarter of 2020, despite the crash of crypto markets.
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