After the Terra blockchain’s crash in mid-June, the FTX exchange’s disastrous collapse last week caused the crypto markets to experience their worst seven-day stretch since that time.
The severity of the situation intensified this past weekend when both FTX and its U.S-counterpart, FTX US, were targeted by an attack that drained billions of dollars in cryptocurrency assets from the exchanges’ wallets.
As a result, the crypto market experienced a rapid drop in prices between November 8th and 10th, which caused an immense panic to sweep through. The total market capitalization decreased by 24% in just over two days, hitting its lowest point at $770 billion.
The market has already seen dips below the $850 billion market capitalization line, and a pattern resembling this one also appeared in June and July. However, the $770 billion intraday bottom on November 9th was the lowest since December 2020.
On November 8th and November 9th, BTC dropped from $20,000, which served as a crucial resistance level, to $15,682.69 in only one day. In addition to breaking support for a triple bottom pattern, Bitcoin, the most valuable cryptocurrency by market size, fell more than 10% on that day.
On the daily timescale, the token also exhibited a “three black crows” pattern, suggesting a possible continuation of the slump. While Ethereum (ETH), the second-largest currency by market capitalization, also experienced a huge decline, going from a trading line of $1,568.33 on November 8th to $1,083.29 on November 9th.
Crypto Market Dips After FTX Exchange Collapse
Concerns of a withdrawal hit on the cryptocurrency exchange, FTX run by Sam Bankman-FTX Fried, sent the market into a nosedive on November 8th, and several altcoins, including the trading platform’s own FTT, saw a sharp decline in value.
According to statistics from CoinMarketcap, FTX’s FTT has dropped from a high of $22.14 and is now trading at $1.48. The currency has suffered a steep loss during the previous seven days of around 94%. Additionally, the 24-hour loss is currently at 20%.
This also has an impact on Solana (SOL), the thirteenth-largest cryptocurrency by market cap, which sees a decline in value. The coin has lost almost 55% of its value, based on the seven-day chart. However, the token is now up 5% over the past 24 hours, trading at $14.32.
Furthermore, per CoinMarketcap, a number of cryptocurrencies are displaying significant losses in the seven-day chart, including Bitcoin which is currently trading at $16,786.52, and Ethereum at $1,259.77, both are down by almost 20% in the last seven days.
In addition, altcoins such as XRP, with a 26.06% loss in the last seven days, Dogecoin (DOGE) is also down by 24.38%, Shiba Inu (SHIB) by over 22%, ALGO by 38.30% and Cronos (CRO) with 43.80%.