The king of cryptocurrencies, BTC, was trading at over $16,500, down just 0.11% in the previous 24 hours. Despite all the pessimism in the market, Bitcoin has maintained its position at around $16,000 for the past three weeks. However, there was one exception when the price of the BTC dropped below $15,500 on Monday. This was chiefly due to concerns regarding the future of cryptocurrency trading and lending firm Genesis Global Capital. Genesis Global Capital is one of the companies which has fallen victim to the famous exchange’s collapse, FTX. FTX had its fingers in too many pies, and traders and investors remain fearful about the contingency of its bankruptcy.
The term “halting withdrawals” is significant and an initial alarming sign in the cryptocurrency sector. In other words, it is like the sight of black smoke pouring out of a skyscraper, confirming there will be damage.
Technically, it implies that a cryptocurrency exchange or lender has blocked consumers from retrieving their money or digital tokens. Generally and historically speaking, it means that there aren’t enough assets for the exchange, or the company has to meet its liabilities, and it has abused its customer’s funds to the max. Hence, the company or the firm is left to follow the path of filing for bankruptcy which creates further damage to the crypto economy.
However, cryptocurrency markets have been more tranquil over the previous three days. A lot has to do with the FOMC Minutes, which indicated that the Fed is now ready to slow down the pace of its interest rate, which has eased concerns among investors and traders. This is the primary reason we have seen more encouraging price action for the US equity market and Bitcoin. Remember, the positive correlation between the US equity market and BTC is still somewhat strong, and both are moving in the same direction. Most experts have a gloomy outlook on prices, even though several crypto watchers believe recent setbacks may eventually boost the cryptocurrency sector by compelling authorities to step up their efforts.
Recently, the price of one ether was about $1,195, representing a gain of 1.16% over the course of the previous day. Cardano (ADA), on the other hand, was trading down nearly one percentage point (-0.96%), while Quant (QNT) was trading up 0.32%. Other cryptocurrencies had varied performances. A decline of 0.26% was seen across all cryptocurrencies as measured by the performance indicator known as the CoinDesk Market Index (CDI).