The global crypto market has once again fallen hard as Bitcoin dipped to a fresh two-year low of $15,000. The market-wide decline was triggered by investors trying to save themselves amid fresh fears that the FTX-induced contagion would further engulf the crypto sector.
FTX’s dramatic collapse prompted the Monetary Authority of Singapore last week to address questions and misperceptions about its regulatory treatment of Sam Bankman-Fried’s crypto-trading venue. The watchdog is looking into claims that FTX received favorable treatment from Singapore’s central bank. Moreover, its state firm Temasek had a $210 million investment in the now beleaguered crypto exchange that it has now written off entirely.
Coming back to Bitcoin’s price, it’s holding at $15,852 after having lost 1.71% in the last 24 hours. The popular crypto is expected to decline further below $14,000, putting another 10,000 BTC at risk for liquidation. Analysts believe BTC is reacting to the stress placed on the market by the FTX’s widespread contagion. In the process of holding onto the crucial $16,000 mark, Bitcoin dropped to a yearly low after a period where many thought a bear market bottom had been found.
A comparably small $83 million, as per Glassnode, in realized profits occurred. This suggests that the vast majority of the spent volume is sourced from investors from the current cycle. But the downturn in the crypto market and short-term uncertainties do not seem to have changed institutional investors’ long-term outlook. Robin Vince, BNY Mellon CEO, shared that a poll commissioned by the bank found that 91% of institutional investors were interested in investing in tokenized assets in the following years. About 40% of institutional investors already have cryptocurrency in their portfolios and around 75% are actively investing in digital assets, or are looking at doing so.