Bitcoin (BTC) is at a multi-year low due to a series of negative news. And the most recent negative news was the collapse of the FTX exchange. Overall, experts believe that around $1.4 trillion has been removed from the crypto markets just this year.
Before the collapse of the FTX, the markets were looking a little bit bullish. However, all of that bullish bias was lost after the collapse of the famous crypto exchange. As a result, Bitcoin's price reached $15,480, which was its lowest level since 2020. Although the coin has recovered a little bit from that level, the overall bias is still negative.
$1.4 Trillion Removed From Crypto Market
Overall, the extent of the bearish trend has made the crypto market lose $1.4 trillion. At first, it was the rising interest rates in the USA that made riskier assets such as crypto unattractive. And the latest straw is the collapse of FTX, which was a major player in the crypto industry.
It all started when the Binance CEO expressed their desire to sell the FTT tokens (It was issued by FTX). The FTX crypto exchange had issued its native digital currency called FTT. This move by Binance is the reason which sparked the FTX collapse.
At one time, the valuation of FTX was close to $32 billion, but now, the company has filed for bankruptcy which is a quick turn of events.
To make things even worse, FTX also experienced a hacking incident in which it lost $477 million worth of digital currency.
And before the whole interest rate hike and the FTX saga, it was the collapse of TerraUSD which started the whole bearish cycle in the crypto markets. With the collapse of the stablecoin, a major hedge fund by the name 'Three Arrows Capital' also went down.
With 2022 nearly coming to an end, the next question is whether 2023 will bring any good news for the crypto market or not!