The Bitcoin Price Has Hit Its All-Time Low this year, Down 77%
Bitcoin’s price has dropped to $15,649, the lowest level since November 2020, according to data compiled by CoinGecko.
From $21,418 on November 5 (before news of FTX’s financial problems broke out), the stock has now crashed by more than 26%.
The revelation comes as markets continue to feel the effects of FTX’s bankruptcy and its subsequent taint. Notable public figures who advocated for the industry are now facing legal action. SALT, Liquid Global, and BlockFi are just some of the cryptocurrency exchanges that have temporarily blocked withdrawals because of their exposure to the FTX collapse.
After suspending withdrawals last week, it has been revealed that Genesis, a cryptocurrency main broker, is also contemplating bankruptcy.
The lender reportedly tried to raise $1 billion from private equity company Apollo Capital and cryptocurrency exchange Binance to resolve its liquidity crisis, as reported by Bloomberg.
The lender’s goal is to “resolve the current problem consensually without the need for any bankruptcy filing,” a spokeswoman told Decrypt, adding that the company has “no plans to file bankruptcy imminently.”
Genesis has blamed their current financial troubles on the rapid influx of customers seeking to withdraw their money in the early aftermath of FTX’s collapse.
The Bitcoin market is struggling.
The historically poor performance of Bitcoin is being exacerbated by both regulatory and market factors.
Fidelity, the largest supplier of 401(k) savings accounts in the United States and one of the largest institutional investors in the world, has recently come under increasing scrutiny from some U.S. legislators to abandon its 401(k) Bitcoin plan.
Sens. Elizabeth Warren (Massachusetts), Tina Smith (Minnesota), and Richard Durbin (Illinois) wrote a letter in which they said FTX’s recent bankruptcy “has made it abundantly evident the digital asset business has severe concerns.”
The Boston-based firm, which manages over $9.9 trillion, intended to release its own trading platform built on top of cryptocurrencies like Bitcoin and Ethereum.
According to a research from CoinShares, short investments into cryptocurrencies have reached an all-time high.
Although $14 million was invested in Bitcoin-related financial products, the investigation indicated that most of these funds came from speculators purchasing Bitcoin shorting products.
Even though Bitcoin’s price hasn’t exactly been constant over the previous several years, the recent market meltdown following the FTX has had a greater impact than any other market crisis this year.
Bitcoin’s price plummeted to a low of $33,263 in July 2022, a massive drop from its historical high of $69,045 on November 10-2021, but yet significantly higher than current levels, due to the collapse of stablecoin terra USD in June and the eventual crash of crypto lender Celsius.
The author’s viewpoints and comments are presented for educational reasons only and should not be construed as investing, financial, or any other kind of advice.