FTX and Alameda’s Ponzi-like trading scheme has dealt a heavy blow to the entire crypto industry. Here are three developments to keep a close eye on.
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3 key crypto price events to watch in the wake of the FTX and Alameda debacle
Up until the start of this week, Bitcoin (BTC) had been demonstrating record-low volatility, and this gave altcoins enough latitude to paint some nice technical setups.
At the same time, on-chain data and technical analysis were beginning to suggest that BTC was midway through carving out a bottom, and many analysts believed that brighter days lay ahead.
Fast forward to the present, and the volatility spike the market received actually turned out to be a black swan event.
As you already know, FTX is kaput.
Alameda Research is kaput.
FTX US suspends withdrawals, according to on-chain data
The development comes less than 24 hours after the platform issued an advisory urging its users to close down trading positions
Total crypto market cap drops to $850B as data suggests further downside
The total cryptocurrency market capitalization dropped by 24% between Nov. 8 and Nov. 10, reaching a $770 billion low. However, after the initial panic was subdued and forced future contracts liquidations were no longer pressuring asset prices, a sharp 16% recovery followed.
Total crypto market cap in USD, 2-days. Source: TradingViewThis week’s dip was not the market's first rodeo below the $850 billion market capitalization level, and a similar pattern emerged in June and July. In both cases, the support displayed strength, but the $770 billion intraday bottom on Nov. 9 was the lowest since December 2020.
The 17.6% weekly drop in total market capitalization was mostly impacted by Bitcoin's (BTC) 18.3% loss and Ether's (ETH) 22.6% negative price move. Still, the price impact was more severe on altcoins, with 8 of the top 80 coins losing 30% or more in the period.
Weekly winners and losers among the top 80 coins. Source: NomicsFTX Token (FTT) and Solana (SOL) were severely impacted by liquidations following the insolvency of FTX exchange and Alameda Research.
Aptos (APT) dropped 33% despite denying rumors that Aptos Labs or Aptos Foundation treasuries were held by FTX.
Total crypto market cap drops to $850B as data suggests further downside
The crypto market managed an 11% bounce from the Nov. 9 low, but a handful of metrics show a severe lack of investor confidence.
Total crypto market cap drops to $850B as data suggests further downside
The total cryptocurrency market capitalization dropped by 24% between Nov. 8 and Nov. 10, reaching a $770 billion low. However, after the initial panic was subdued and forced future contracts liquidations were no longer pressuring asset prices, a sharp 16% recovery followed.
Total crypto market cap in USD, 2-days. Source: TradingViewThis week’s dip was not the market's first rodeo below the $850 billion market capitalization level, and a similar pattern emerged in June and July. In both cases, the support displayed strength, but the $770 billion intraday bottom on Nov. 9 was the lowest since December 2020.
The 17.6% weekly drop in total market capitalization was mostly impacted by Bitcoin's (BTC) 18.3% loss and Ether's (ETH) 22.6% negative price move. Still, the price impact was more severe on altcoins, with 8 of the top 80 coins losing 30% or more in the period.
Weekly winners and losers among the top 80 coins. Source: NomicsFTX Token (FTT) and Solana (SOL) were severely impacted by liquidations following the insolvency of FTX exchange and Alameda Research.
Aptos (APT) dropped 33% despite denying rumors that Aptos Labs or Aptos Foundation treasuries were held by FTX.
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Bitcoin slips under $17K, crypto stocks tumble in reaction to FTX bankruptcy
Bitcoin, altcoins and crypto-linked stocks correct sharply after FTX officially files for bankruptcy with BTC price slipping below its June lows again.
Bitcoin slips under $17K, crypto stocks tumble in reaction to FTX bankruptcy
Bitcoin, altcoins and crypto-linked stocks correct sharply after FTX officially files for bankruptcy with BTC price slipping below its June lows again.
Bitcoin slips under $17K, crypto stocks tumble in reaction to FTX bankruptcy
Bitcoin (BTC), Ether (ETH) and cryptocurrency-linked stocks like MicroStrategy are seeing a sharp downturn after news broke that FTX announced filing for Chapter 11 bankruptcy and Sam Bankman-Fried stepped down as CEO.
Bitcoin, Ether and MicroStrategy comparison. Source: TradingViewCrypto-linked stocks decline
MicroStrategy’s stock, led by the outspoken Bitcoin advocate Michael Saylor, is down 32.57% on Nov. 11 over a five-day period. MicroStrategy holds about 130,000 BTC, and therefore, its stock price is heavily correlated with BTC/USD. Meanwhile, the tech-heavy Nasdaq has gained 0.79%.
Mining stocks also saw losses on Nov. 11, with the Hashrate Index’s Crypto Mining Stock Index showing a 0.14% loss at the time of writing. Top miners’ market performance is much lower, with Marathon down 4.95%, Riot down 5.74% and Hive down 16.08%.
Mining stock performance sorted by market cap. Source: Hashrate IndexMeanwhile, ETH price saw a 22% decrease this past week despite Ether becoming deflationary for the first time since the Merge. Over 8,000 ETH has been burned in the last seven days, bringing the yearly rate to -0.354%.
7-day Ether supply statistics. Source: Ultra Sound MoneyIn addition to the FTX debacle hindering Ether price, a mass amount of futures liquidations caused the price to hit a fo-month low of $1,070 this week.
FTX crisis likely to spark a domino effect, macro analyst explains
The collapse of Sam Bankman-Fried's crypto empire is likely to have ripercussions beyond the crypto markets, according to senior commodity strategist at Bloomberg, Mike McGlone.
FTX crisis likely to spark a domino effect, macro analyst explains
The collapse of Sam Bankman-Fried’s crypto empire is likely to have repercussions beyond the crypto markets, according to Mike McGlone, senior commodity strategist at Bloomberg.
FTX crisis likely to spark a domino effect, macro analyst explains
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The repercussions of the cataclysmic FTX downfall are going to be broader than the crypto markets, as they will accelerate downward moves in stocks and commodity markets, according to Mike McGlone, senior marco analyst at Bloomberg.
“Bitcoin has been one of the leading indicators on the way up, and it’s a leading indicator on the way down. And it’s just broken down, so expect most dominoes to fall,” McGlone pointed out in a recent interview with Cointelegraph.
CySEC requested FTX's European arm suspend operations prior to bankruptcy: Report
FTX Europe was one of roughly 130 companies in FTX Group which will be a part of bankruptcy proceedings in the United States.
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FTX ex-exec floats 'cool token' idea amid warning rebound may take years
Bitcoin (BTC) and cryptocurrency may “take years to recover” from the FTX scandal, one industry analyst warns.
In a Twitter thread on Nov. 11, Filbfilb, co-founder of trading suite Decentrader, said that the Terra LUNA debacle was itself still playing out.
Filbfilb: "I've never seen such a debacle"
The crypto industry is experiencing “a clear case of what goes up must come down,” Filbfilb summarizes.
As the fallout from FTX and Alameda Research only begins to become apparent, many industry businesses and associated tokens have been left reduced to a shadow of their former selves.
Amid bankruptcy concerns from those with exposure to FTX and investigations from regulators, the outlook looks bleak for the industry’s reputation.
FTX ex-exec floats 'cool token' idea amid warning rebound may take years
Bitcoin (BTC) and cryptocurrency may “take years to recover” from the FTX scandal, one industry analyst warns.
In a Twitter thread on Nov. 11, Filbfilb, co-founder of trading suite Decentrader, said that the Terra LUNA debacle was itself still playing out.
Filbfilb: "I've never seen such a debacle"
The crypto industry is experiencing “a clear case of what goes up must come down,” Filbfilb summarizes.
As the fallout from FTX and Alameda Research only begins to become apparent, many industry businesses and associated tokens have been left reduced to a shadow of their former selves.
Amid bankruptcy concerns from those with exposure to FTX and investigations from regulators, the outlook looks bleak for the industry’s reputation.
FTX collapse: The crypto industry’s Lehman Brothers moment
The collapse of FTX came as a surprise to many, but as more information pours in, it seems FTX's liquidity crisis began sooner than many thought.
Ethereum turns deflationary for the first time since the Merge — ETH price still risks 50% drop
A bearish technical setup and a declining number of Ether whales pose downside risks for ETH’s price.
Ethereum turns deflationary for the first time since the Merge — ETH price still risks 50% drop
The annual supply rate of Ether (ETH) slipped below zero for the first time since Ethereum’s transition to proof-of-stake via the Merge in September. The reason? A spike in on-chain activity amid a massive cryptocurrency market crash.
Ether turns deflationary for real
As of Nov. 9, more Ether tokens are being burned than created as a part of Ethereum’s fee-burning mechanism. Simply put, the more on-chain transactions, the more ETH transaction fees get burned.
On a 30-day timeframe, the Ethereum network has been burning ETH at an annual rate of 773,000 tokens against the issuance of 603,000 tokens. In other words, ETH’s supply is going down by 0.14% per year.
Ether supply growth as of Nov. 11. Source: Ultrasound.MoneyOverall, the Ethereum network has burned 2.72 million ETH since the fee-burning mechanism was introduced in August 2021. That amounts to the permanent destruction of nearly 4 ETH per minute.
Ethereum’s transaction fees spiked to their highest levels since May 2022 due to traders rushing to transfer their ETH to and from exchanges amid the dramatic collapse of FTX.
