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 a look at the state of the market.
Bitcoin (BTC) breaks $16,000 and heads into the unknown
While we sought to reassure ourselves a few months ago by observing that “never after a bull run has Bitcoin fallen back below its all-time high”, that statement has since been contradicted and is now far behind us. And for good reason, BTC is on historic lows, falling back below $16,000 for the first time since November 16, 2020.
This is a sad anniversary, exactly one year after the last ATH. Indeed, as volatility continues to challenge the numbers, the Bitcoin price has lost more than 77% of its price since that previous high:
Figure 1 – BTC price in weekly data
This market behaviour is obviously a continuation of the FTX affair, and more particularly following the withdrawal of Binance from its offer.
However, it should be noted that at the same time in November 2020, ETH was trading at $450, compared to $1,110 today.
Disparities in the market
While unsurprisingly, the overall trend is down, not all cryptocurrencies in the market are on the same page.
On the one hand, there are assets that are falling more than the market. After Binance’s announcement, FTT, whose future is more than compromised, continued its free fall to $1.3, before stabilising around $1.85:
Figure 2 – FTT price in hourly data
As we have also noted, Solana’s SOL and other tokens in the ecosystem such as Raydium’s RAY and Serum’s SRM are also feeling the pinch. With Sam Bankman-Fried and his companies heavily invested in this blockchain, investors are losing confidence in these projects.
However, some crypto-currencies are doing better than others. These examples are of course anecdotal compared to the majority of the ecosystem, but Tron’s TRX for example is “only” giving up around 15% where 25% loss values are common.
This is also the case for the dYdX platform token, which even allows itself to close the day in green, as the project teams seem to be announcing the arrival of their new blockchain. Indeed, dYdX is due to develop soon on the Cosmos ecosystem :
Loading dYdX Chain…
▓▓▓▓▓▓▓▓▓▓▓▓▓▓▓▓░░░░ 82%– dYdX (@dYdX) November 9, 2022
Of course, whatever assets one may like, it goes without saying that in times of uncertainty such as these, the utmost caution should be exercised when investing.
