Bitcoin sinks Back To Two-Year Low

At $15,649, Bitcoin has hit its lowest price since November 2020, as per CoinGecko data. The latest price crash represents a fall of over 26% from $21,418 on November 5. That is, before word of any of FTX’s financial issues leaked out. 

Bitcoin Still Suffering From FTX Catastrophe

Furthermore, the news comes as markets are reeling from continued fallout and cross-contamination from FTX’s slide into bankruptcy. Various high-profile celebrities, for example, have been ensnared in a lawsuit for promoting the exchange. 

Crypto firms like SALT, Liquid Global, and BlockFi have all halted withdrawals, citing exposure to FTX’s collapse.  Notably, Crypto prime broker Genesis is also reportedly considering bankruptcy after shuttering withdrawals last week. 

Well, according to sources reported by Bloomberg, the lender had been talking with private equity firm Apollo Capital. Not only Apollo but also to Binance about financing and attempted to raise $1 billion to fix its liquidity crisis.

Furthermore a representative had the following to say. “We have no plans to file bankruptcy imminently.” It added that its goal “is to resolve the current situation consensually without the need for any bankruptcy filing.”

Genesis pinpointed the sudden surge in customers looking to withdraw their assets. This is in light the immediate collapse of FTX as the main cause of their current financial woes. 

However, FTX has created unprecedented market turmoil, resulting in abnormal withdrawal requests which have exceeded our current liquidity.

Bitcoin on the ropes

In addition, both regulatory and market pressures are contributing to  Bitcoin’s historically bad performance. Fidelity, one of the world’s largest institutional investors, has also recently come under new scrutiny. This time, the scrutiny is from some U.S. politicians to drop its 401(k) Bitcoin plan. Senators Elizabeth Warren of Massachusetts, Tina Smith of Minnesota, and Richard Durbin of Illinois all signed a letter. A letter saying that FTX’s recent slide into bankruptcy “has made it abundantly clear the digital asset industry has problems.”

The Boston-based firm, which has around $9.9 trillion under management, had been planning. All plans seem to be in place towards launching its own Bitcoin and Ethereum-based trading app. 

Meanwhile, a report from CoinShares has found that cryptocurrencies are receiving the largest inflows of short investments on record.

The report found that there was an inflow into Bitcoin-related investment products of $14 million. However, around 75% of this inflow came from speculators buying products that allowed them to short Bitcoin.

Its no news that Bitcoin hasn’t exactly been stable over the past few years. However, the recent post-FTX market crash exceeds the impact caused by any other market crisis this year. 

The collapse of algorithmic stablecoin terraUSD in June and the subsequent collapse of crypto lender Celsius  prompted Bitcoin prices to crash. Bitcoin crashed to a low of $33,263 in July 2022, a mammoth decline from its historical peak of $69,045 on November 10, 2021. However, it is still well above current levels. 

SBF And Solana Tantrums

Meanwhile, back in January 2021, Solana was a relatively new blockchain network. Sam Bankman-Fried wasn’t quite the mythical crypto figure he’d soon become.The FTX founder publicly antagonized a trader who was bearish on Solana’s prospects.

“I’ll buy as much SOL [as] you have, right now, at $3,” Bankman-Fried tweeted at the pseudonymous CoinMamba. This was following a lengthy back-and-forth about bets on its future price. “Sell me all you want. Then go fuck off.”

The tweet became legendary in crypto. But now, following the collapse of FTX and Sam Bankman-Fried’s bankruptcy, the tables have turned.