Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Such content is therefore provided as no more than general information. Such access and use are always subject to: (i) Terms and Conditions (ii) Risk Warnings and (iii) Full Disclaimer. Nevertheless, the FTX/Alameda drama has served as just another reminder that cryptocurrencies are still rocked by insolvency troubles and should this latest episode escalate into another collapse, it might leave a more permanent bruise on crypto markets.ĭisclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. However, if the panic subsides in the coming days, or at the very least, there is no further spillover to the major cryptos, Bitcoin might be well positioned to reverse higher and have another go at popping above its recent peak of $21,473.Ī break above this high, which coincides with the 50% Fibonacci retracement level of the June-August upleg, would bring into scope the 200-day moving average, followed by the range top of $25,000.Ī strong rebound would of course be contingent on a broader rally in risk assets, which might well be determined by what the outcomes are of the mid-term elections and the October inflation report in the United States this week. The price is currently testing the short-term ascending trend line around $19,300.īreaching this support would turn attention to the crucial barrier of $19,000, after which sellers might renew their attack on the $18,000 floor of the medium-term sideways range. Bitcoin has skidded by over 9% since Sunday, decoupling from Wall Street. In comparison, the drop in Bitcoin and other altcoins has not been quite as dramatic, though still significant. The price of other stablecoins such as SOL and Serum’s SRM have also fallen sharply. But the biggest damage came after the CEO of the world’s largest crypto exchange – Binance – said the exchange will unload all its remaining holdings of FTT.įTT has since plummeted by about 40%, with attempts by FTX and Alameda owner, Sam Bankman-Fried, to ease concerns about liquidity only having a negligible effect in calming the situation. It didn’t take long for news of this potentially heavy and risky exposure to FTT to spark a massive outflow of stablecoins from FTX. Speculation about FTX’s liquidity problems first arose when CoinDesk reported last week that a large chunk of Alameda’s balance sheet is comprised of FTT, with Solana’s SOL token also making up an uncomfortably high portion of its assets. It’s no wonder therefore that worries that FTX and its sister company Alameda Research – a crypto trading firm and investment fund – are at risk of becoming insolvent have rattled the entire cryptocurrency market. The collapse of stablecoin Terra (Luna) earlier this year is still fresh in investors’ minds. Cryptocurrency exchange FTX is the latest platform that has been beset by solvency rumours, triggering a plunge in the price of FTX’s native token, FTT, as well as fears of a wider contagion. But over the past three days, Bitcoin and its peers have taken a tumble, amid worries of a fresh liquidity crisis hitting the crypto sphere. The major cryptocurrencies have been broadly trending higher since October, somewhat resembling the rebound in stock markets.
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