Cryptocurrency Prices And News: Bitcoin Drops As Crypto Firms Struggle With FTX Fallout

November 17, 2022 World Blockchain

Cryptocurrency News: Cryptocurrency prices are lower Wednesday after seeing a slight boost on Tuesday following the latest inflation data with the Labor Department’s producers price index report. Most major digital assets are down more than 20% over the last 11 days in the wake of FTX’s bankruptcy.

Genesis Trading halted withdrawals for its $2.8 billion crypto lending unit on Wednesday after confirming liquidity issues following FTX’s bankruptcy. Meanwhile, crypto lender BlockFi started preparing for bankruptcy on Tuesday and is “not able to operate business as usual” after receiving a $400 million bailout from FTX earlier this year.

Binance plans to launch an industry recovery fund for crypto projects facing liquidity crises in an effort to “reduce further cascading negative effects of FTX,” CEO Changpeng Zhao tweeted Monday.

Crypto prices fell on Friday after FTX officially filed for bankruptcy and CEO Sam Bankman-Fried resigned in the morning.

Meanwhile, FTX faces a regulatory probe over its handling of customer funds and lending practices.

Last Wednesday, Binance announced it would walk away from its proposal to buy FTX, the Wall Street Journal Reported. Binance announced it signed a nonbinding letter of intent to buy FTX’s non-U.S. operations in an effort to solve FTX’s liquidity crunch.

Cryptocurrency Price Action
Bitcoin edged toward $16,600 by Wednesday afternoon after from its Tuesday highs above $17,000 overnight. The world’s largest cryptocurrency traded above $21,000 two weekends ago prior to the unraveling of FTX. The two-week meltdown pushed Bitcoin to two-year lows.

Ethereum slid near $1,210 late Wednesday after peaking at $1,277 on Tuesday. The #2 crypto traded near $1,650 prior to the FTX collapse.

Digital asset investments are extremely volatile. While cryptocurrency’s fundamentals and technical indicators may differ, investors should focus on the same key objectives. First, stay protected by learning when it’s time to sell, cut losses or capture profits. Second, prepare to profit if the cryptocurrency starts to rebound.

Despite their original promise, cryptocurrencies haven’t acted as hedges against inflation. Instead, they’ve trended with the broader indexes.