In the turmoil caused by the FTX affair, the price of Bitcoin (BTC) falls back below $16,000 for the first time since November 16, 2020. Let’s take stock of the state of the market.
Bitcoin (BTC) Breaks $16,000 and Steps Into the Unknown
While we sought to reassure ourselves a few months ago by observing that “never after a bull run has Bitcoin gone back below its all-time high”, this assertion, which has since been contradicted, is now far behind us. And for good reason, BTC is at historic levels, falling back below $16,000 for the first time since November 16, 2020.
So it’s a very sad anniversary, exactly one year after the last ATH. Indeed, while volatility continues to challenge the numbers, the price of Bitcoin has lost more than 77% of its price since this previous high:
Figure 1 – BTC price in weekly data
This market behavior is obviously a continuation of the FTX affair, and more particularly following the fact that Binance withdrew from its offer.
Note, however, that at the same period of November 2020, ETH was trading at 450 dollars, against 1,110 today.
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Disparities in the market
While unsurprisingly, the overall trend is downward, not all cryptocurrencies on the market are in the same boat.
On the one hand, there are assets that fall more than the market. After Binance’s announcement, the FTT, whose future is more than compromised, continued its free fall to $1.3, before stabilizing around $1.85:
Figure 2 – FTT price in hourly data
As we have also pointed out, Solana’s SOL and other ecosystem tokens such as Raydium’s RAY or Serum’s SRM are also suffering the full force of the crisis. Since Sam Bankman-Fried and his companies are heavily invested in this blockchain, investors are losing confidence in these projects.
However, some cryptocurrencies fare better than others. These examples are of course anecdotal compared to the majority of the ecosystembut the TRX of Tron yields for example “only” approximately 15% where the values with 25% of losses are common.
This is also the case dYdX platform token, which even allows itself to close the day in green, while the project teams seem to announce the arrival of their new blockchain. Indeed, dYdX must soon be developed on the Cosmos ecosystem:
Loading dYdX Chain…
— dYdX (@dYdX) November 9, 2022
Of course, whatever assets anyone may be fond of, it goes without saying that in a time of uncertainty like this, the greatest caution is required in terms of investment.
👉 Also read – Back to the beginnings of the FTX affair
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Source: Trading View
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