On Tuesday, Bitcoin sank to a 2-year low of $15,480 (€15,050) as other cryptocurrencies followed the negative trend. Cryptocurrencies continue to experience the repercussions of the falling FTX empire.
The entire crypto market has lost more than $1.4 trillion (€1.3 trillion) in value this year due to several factors, including the Terra Luna scandal and now the collapse of FTX, the world's third-largest crypto exchange managed by Sam Bankman-Fried.
This month, FTX filed for bankruptcy after CoinDesk highlighted concerns about a liquidity situation. The cryptocurrency news website reported that the majority of Alameda, a crypto trading company also managed by Bankman-Fried, was held in FTT, the FTX token.
Shortly thereafter, Changpeng Zhao (also known as CZ), CEO of the cryptocurrency exchange Binance, said that his company would sell its FTT tokens, triggering the beginning of FTX's implosion.
Binance stated that it had signed a letter of intent to acquire FTX, but later reversed its decision, claiming that FTX's problems were "beyond our control."
Tuesday's price of Ethereum, the second-largest cryptocurrency, was $1,089 (€1,059), a decline of more than 13 percent in the last seven days.
But other cryptocurrency exchanges are feeling the heat as well. Monday's closing price for Coinbase's stock represented its lowest point since its debut in April of last year.
In the past four trading sessions, it has lost roughly a quarter of its value.
Meanwhile, FTX reportedly owes approximately $3.1 billion (€3 billion) to its top 50 debtors, while Bankman-companies Fried's have $1.2 billion (€1.1 billion) in cash as of November 20.
John J. Ray III, Bankman-successor Fried's as CEO of FTX, is attempting to sell or restructure the FTX empire.
He has criticised the inexperience of senior managers and the use of corporate cash to purchase real estate in the Bahamas, where Bankman-Fried had relocated FTX's activities.
By fLEXI tEAM