The fallout of the FTX crash seems to be much more than the market analysts had expected. Despite the FTX Token (FTT), the native token of FTX taking most of the damage, other cryptos are also badly affected.
This is not a good sign for the entire cryptocurrency because if the trauma of the FTX crash does not go away, the entire crypto industry may continue suffering.
Bitcoin and Ethereum Feel the Pressure
Even the two largest cryptocurrencies are not able to save themselves from the FTX catastrophe. Bitcoin and Ethereum continue losing their investors as they have been losing their confidence in the crypto.
Due to the fears of the investors, the entire crypto market has become very sensitive. Even the slightest of dips are causing the trading price of major cryptocurrencies to plummet.
The investors seem to have adopted the same behavior against Bitcoin and Ethereum. The values of both the largest cryptocurrencies have continued experiencing downtrends even in the past 24 hours.
BTC and ETH Declines
A look at Bitcoin’s past 24-hour performance chart shows that its value has declined by 4.22%. After experiencing the dip, BTC’s trading price has fallen to a low of $16,010
Ethereum seems to be moving in the same direction but its decline is double the size of Bitcoin. In the past 24 hours, the value of Ether has suffered from an 8% dip.
Following the dip, the trading price of Ether has fallen to a low of $1,121.
Remarks by Naeem Aslam
Naeem Aslam, a senior analyst at Avatrade has shared his analysis of the Bitcoin and Ether crisis. He has been closely monitoring the price movement of both the largest assets ever since the FTX crash took place.
Based on his analysis, he has claimed that another weekend has passed where the trading price of both Bitcoin and Ether have continued declining.
This is because the investors are concerned about the safety of their funds at the cryptocurrency firms.
Following the FTX crash, a domino effect has come to life, where firms are ceasing their operations one after another.
Aslam went on to claim that many investors are thinking that the worst is over. However, as per his calculations, the worst is yet to come in BTC and ETH way.
With cryptocurrency firms constantly shutting down their businesses, things will never be the same.
The cryptocurrency market is still moving toward a decline and more companies would continue going out of business.
FTX Owes Billions to Creditors
The most shocking part is that recently, it was revealed by the bankruptcy court that FTX owes over $3 billion to more than 50 creditors.
This means that there are many firms hiding their losses but it is only a matter of time before they open up about their losses.
When that happens, Bitcoin and Ether would face even larger sellouts, dragging down their prices to enormous levels.