As an emblem of the difficulties currently experienced by the cryptocurrency market and the many trading platformsbitcoin (BTC) fails to recover.
Between distrust and bankruptcies in a most volatile environment, the BTC has reached its lowest level in two years.
Dark Skies and Not a Single Breakthrough of the Sun in the Crypto Market
Still valued at $31,700 on May 30, 2022 and $21,300 on November 5, 2022, bitcoin continues to fall and waver in the lowlands of a value it had not known since November 2020, in the midst of the COVID-19 pandemic. We will not return for the umpteenth time to the volatility of crypto-currencies and, more broadly, all the precautions to take before investing in them. However, several factors help explain why bitcoin is experiencing a particularly tumultuous month of November 2022, with a value of 15,640 dollars on the evening of Monday, November 21.
The first factor is due to the global economic situation, because if the latter has picked up with the attenuation of the COVID-19 pandemic in 2021, in other words, the year 2022 has seen a multiplication of uncertainties. These are economic, the year being marked by high inflation, such as geopolitics, with in particular the ongoing war in Ukraine, or health, since COVID-19 is still present at the approach of winter.
Not enough to push investors to see things in the long term, but rather to keep their assets warm, especially those that have a guaranteed value. Because one of the other determining factors, namely the liquidity crisis known in the crypto market, is relative to the “value” of these same crypto-currencies, and bitcoin is no exception. Overall, cryptos have lost $1.4 billion in valuation in one year.
FTT as a symbol of volatility
Other factors such as trust and the law of supply and demand shake within minutes when Binance realizes that it cannot withdraw to FTX the $500 million the platform has in FTT equivalent, the FTX token. That same FTT that used to trade up to $50 a unit now only trades at $1.26 after the crypto world saw that FTX didn’t have the cash for that trade.
What is his token worth now? Not far from a loaf of bread, and again, the food is concrete. The -97% in value of the FTT between its peak and November 22, 2022 does not overshadow the -74% suffered by Ether (ETH) between November 2021 and 2022, or even the -55% of Binance’s BNB. As for bitcoin, there is no reason to foresee an improvement in the coming months, and it is not the bankruptcy of FTX that will reassure many people.
Sources: CNBC, Gizmodo
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