In one week, many of the largest cryptocurrencies weakened by more than 20 percent, with values corresponding to more than 2,100 billion Norwegian kroner evaporating.
The spectacular bankruptcy of crypto exchange FTX caused massive turmoil in the cryptocurrency markets.
According to CoinMarketCap, the value of the world’s cryptocurrency has fallen by more than 20 percent in the past week. This corresponds to a loss in value of more than 2,100 billion crowns, which evaporated in the wake of the bankruptcy of FTX.
Over the past seven days, the largest cryptocurrencies have developed as follows:
- Bitcoin: down 22 percent
- Ethereum: down 23 percent
- BNB (Developed by Binance Crypto Exchange): down 21 percent
- XRP: down 29 percent
- Dogecoin: down 29 percent
- Solana: down 59 percent
In addition, the cryptocurrency FTT, created by crypto exchange FTX, has fallen by 93 percent in the past week.
Tether, a cryptocurrency that should be worth $1 at any time, fell below $1 on Thursday. It then traded as low as $0.98, before recovering somewhat again.
The whole of 2022 was a terrible year for cryptocurrencies. In November 2021, the value of the world’s cryptocurrency was $2.914 billion. Now, a little more than a year later, the value has fallen to less than $850 billion. This represents a decrease of more than 70 percent.
Liquidity squeeze in FTX
On Friday, cryptocurrency exchange FTX filed for bankruptcy protection in the United States, after an exciting week that ended with the collapse of one of the world’s most popular crypto companies in record time.
FTX has been among the largest and most popular crypto companies in recent years. Within a week, the company collapsed as a result of liquidity pressures. A large number of the company’s clients tried to withdraw their money in a short time.
On Tuesday, it was announced that a competitor – cryptocurrency platform Binance – was opened to the rescue. But after a very short time the company withdrew from the operation.
Soon, the company was forced to file for bankruptcy protection, and its founder and CEO Sam Bankman-Fred resigned.
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