Bitcoin (BTC) hits 2-year low as FTX collapse contagion fears linger

Bitcoin reversed greater on Tuesday after briefly hitting a two-year low, as traders assess potential harm nonetheless to return within the aftermath of FTX’s collapse.

The most important cryptocurrency by market cap was final buying and selling greater by 2.5% at $16,204.92, based on Coin Metrics. Earlier within the day it fell to $15,480, its lowest stage since Nov. 11, 2020. Ether rose 2.1% to $1,126.92.

The cryptocurrency market has misplaced greater than $1.4 trillion in worth this yr because the business has been plagued with issues from failed tasks to a liquidity crunch, exacerbated by the autumn of FTX, as soon as one of many world’s largest exchanges.

Crypto’s newest points started after Changpeng Zhao, the CEO of Binance, stated his change would promote its FTT tokens. FTT is the native digital foreign money of FTX’s crypto change. Binance’s transfer sparked the collapse of FTX, an organization as soon as valued at $32 billion. FTX has since filed for chapter.

To make issues worse, hackers stole round $477 million of cryptocurrency from FTX, the majority of which has been transformed into the digital coin ether. However the hackers have begun to launder that cash into bitcoin. As a result of they’re promoting ether, the worth of ether has additionally been beneath strain.

Ether was buying and selling down practically 2% at $1,109.55 at 8:12 a.m. ET.