Bitcoin has once again dipped to the $16,000 level but near the crucial $17,000 mark as the crypto markets struggle to overcome the latest shock brought in by the fall of Sam Bankman-Fried’s company FTX.
Craig Erlam, the senior market analyst for Oanda, said the collapse of the FTX and the uncertainty it has brought to the industry has been another damaging blow. He believes its intensity depends on what further details come up. But cryptocurrency prices remain under pressure and vulnerable to further sharp declines.
Data shows that the 17.6% weekly drop in the total market capitalization was mainly impacted by BTC’s 18.3% loss and Ether’s 22.6% downturn. Analysts noted that the price drop of the top two cryptocurrencies was more severe on altcoins, with eight of the top 80 coins losing 30% or more in the period. Severe liquidations took a toll on FTX’s FTT token and Solana’s SOL, while Aptos (APT) lost 33%.
Analysts expect Bitcoin to witness an influx in volatility. BTC’s price could challenge the newly established bears near the $20,000 mark and its second target near $23,400. At the time of writing this article, Bitcoin was trading at $16,886. It’s down by 1.02% in the 24 hours. Ether has gained 1.81% in the last 24 hours and changing hands at $1,261. The majority of the crypto market is in red. Cardano (ADA) lost 3.54% of its value, Solana is down by 3.14%, Polygon 2.74%. Avalanche is the biggest loser. It’s down by 7.73%.
If Bitcoin continues with its dip, it will touch the low of $15,000. Bearish pressure on the much-loved coin has increased losses.