The capitalization of the global cryptocurrency market is at its worst. It fell below the $800 billion mark for the first time in 691 days or since December 30, 2020.
The value of the main cryptocurrencies has been in free fall for several months now, but this collapse has recently been accelerated by the setbacks of FTX, one of the most famous cryptocurrency management platforms. To make matters worse, the exchange was even the victim of a hack, since dubious financial transactions were made on the company’s accounts.
Total cryptocurrency market capitalization fell 5% between Nov. 14 and Nov. 21, reaching an amount of 795 billion dollars. However, the general sentiment is much worse, considering that this valuation is the lowest seen since December 2020. Most digital assets therefore continue to feel the negative side effects of FTX’s bankruptcy, which has shaken investor confidence in the sector as a whole.
Bitcoin and Ethereum see their value fall
Ether was recently trading below its most recent support of $1,200. The second-largest crypto by market value has fallen almost 10% since peaking at $1,275 last week to hit under $1,100 earlier in the day. Ether has underperformed Bitcoin over the past two sessions, in part due to speculation that part of the $663 million withdrawn from FTX during its bankruptcy was made up of Ether. Indeed, it would seem that the person who robbed the FTX was one of the largest Ether holders in the world, with a loot of around $288 million.
For its part, Bitcoin is also experiencing a dark period. The most popular cryptocurrency recently traded below $16,000a far cry from its all-time high of nearly $69,000 hit in November 2021. The fate of bitcoin once again dictated the direction of the altcoin market, with the vast majority of tokens trading in the red for the day, with traders exiting the market in anticipation of further declines.