Cryptocurrency Market Faces Setback After FTX Collapse

Cryptocurrency Market Slump

Bitcoin and other major cryptocurrencies have seen a sharp decline, erasing their recent short-term gains. This downturn follows the collapse of FTX, which has significantly impacted market confidence. Bitcoin has fallen below $17,000, while Ethereum and other altcoins are also trading in the red after initially showing some recovery.

Market Impact

The cryptocurrency market's rally was short-lived, with Bitcoin and Ethereum gaining over 3% and 7.7% respectively in the last week. However, the FTX collapse has left a lasting impact, and the market confidence has not rebounded as expected. This has caused most major cryptocurrencies to slip back into negative territory.

Current Market Movers

Despite the downturn, a few cryptocurrencies have managed to post gains. EthereumPoW (ETHW), Terra Classic (LUNC), and Trust Wallet (TWT) have emerged as top gainers in the past 24 hours, with increases of 20%, 13%, and 9%, respectively. Meanwhile, Bitcoin has seen a significant decline of 17.34% over the last 30 days, and Ether has similarly fallen by 19.81%.

Bitcoin and Ethereum Price Movements

Prior to the market slump, Bitcoin was trading around $21,000. However, it plummeted to a low of $15,590 following the FTX collapse and is currently priced at $16,921. Ethereum witnessed a similar decline, dropping from a high of $1,661 to the $1,000 range, and is now trading at $1,272.

Conclusion

The recent collapse of FTX has left the cryptocurrency market vulnerable, reversing the gains witnessed earlier. While some coins have managed to buck the trend, the overall sentiment remains cautious as investors await signs of recovery.