The cryptocurrency market is still in rough waters. Investors were concerned about the stability of the sector and the financial standing of the top crypto exchange FTX despite a decline in U.S. inflation.
Digital assets like Bitcoin and other cryptocurrencies saw greater price declines as a result.
Coincident with a previous rise in bitcoin prices, the CPI numbers showed a slower decline than expected. This provided investors hope that pricing pressures may be reducing during a time of intense anxiety. This growth was transient, though, as the effects of market contagion set in.
Other financial assets recovered after the US released a lower-than-anticipated inflation rate for October, which helped the pound, Euro, and naira surge (black market rate) on Thursday.
Exactly one year after reaching a record high, bitcoin is still more than 70% below that level.
In the meanwhile, 137,650 traders sold out their cryptocurrency holdings worth $241.37 million. On Binance, there was the biggest single liquidation order at $3.76 million in BTCUSDT.
Numerous events in the world of cryptocurrency during the last few days have affected pricing as expected. For instance, the price of Bitcoin surged to a multi-week high of about $21.5K over the weekend.
In this time, Ethereum’s price fell from over $1,600 to over $1,100. Despite now trading above $1,200, the second-largest cryptocurrency is still down by double digits for the week.
Binance Coin is another major victim of the present chaos. BNB climbed to $400 after learning that Binance would purchase FTX before dropping quickly. Binance’s declaration that it will not acquire the SBF-led exchange further pushed BNB down to its current level.
FTX apologizes: The chief executive of FTX, Sam Bankman-Fried, issued an apology to the cryptocurrency community and investors on Thursday for his errors during the liquidity crisis.
Bankman-Fried apologized through Twitter and said he was currently in talks to generate money that would be “first used to do right by the clients.”
State and federal investigations are currently concentrating on the crypto exchange with its headquarters in the Bahamas, which has ceased receiving withdrawals. Sam Bankman-Fried, the company’s creator, insists that FTX US is operating normally, but on Thursday, the company warned that it would suspend trading and advised clients to avoid making deposits.
Investors anticipated Binance to save the day through a potential bailout as this week’s events developed, but the CEO of the firm announced late on Wednesday that the plan had been abandoned.