The top two cryptocurrencies Bitcoin and Ether volatility has fallen 14% and 18%, respectively, over the last seven days. BTC has tested the $16,000 resistance several times in the week.
It has managed to hold on and is currently trading at $16,643. Ether is changing hands at $1,208. The altcoins have given a mixed reaction, but the majority remain in the red. Solana is down by 5.14% in the last 24 hours, Polkadot lost 2.22%, and Polygon is down 1.92%.
Daniel Knowles, a correspondent at The Economist, finds it annoying that Bitcoin is still selling for $16,000, even in the wake of all of the FTX news. He assumes the volume is low, but questions what will it take for it to properly wipe it out – plunge it to $0. Knowles believes the 26th largest tradable asset in the world with a $332 billion market cap is astonishingly useless and wasteful. He said there is no logical case for specifically Bitcoin as it’s pure Ponzi.
In the past seven days, the much-loved cryptocurrency is trying to break above $17,000. But there is a lack of appetite from buyers above that level. It may be because of contagion risks, similar to what was seen with Genesis Block, which had to suspend service due to liquidity concerns. Analysts say the BTC price is now stuck in a downtrend. It will be hard to break out. FTX’s downfall has further fuelled investors’ uneasiness about digital assets’ long-term prospects.