In early trading on Thursday, the top 10 tokens by market capitalization, excluding stablecoins, saw price declines, including those of bitcoin and ether. Investors are uneasy as it becomes clear who will be affected by the failure of the FTX bitcoin exchange, and layoffs in the technology sector indicate a challenging economic future.
In the 24 hours, Bitcoin decreased 1.3% to US$16,666. Ether fell 2.9% to US$1,215, according to CoinMarketCap.
This week saw record-breaking levels of withdrawals of bitcoin from centralized cryptocurrency exchanges due to investors switching to self-custody options after FTX.com’s demise. According to CryptoQuant, withdrawals from bitcoin exchanges increased to 742,401 between November 9 and November 15, with the biggest withdrawal being 168,287 coins on November 9.
The significant deleveraging in May and June 2022 had left few, if any, large marginal sellers in this space, analysts David Duong and Brian Cubellis of U.S.-based cryptocurrency exchange Coinbase wrote in a monthly outlook report.Â
The drama around FTX upset what was otherwise an emerging positive setup for crypto, they added. According to the report, the crypto winter may last until the end of 2023.Â
But the recent market turbulence and absence of large buyers has left the asset class vulnerable, potentially extending an already long crypto winter, said the report.
Although it was still trading up 10.6% during the past seven days as one of the greatest performers amid the market volatility over the past two weeks, Polygon suffered the largest losses in CoinMarketCap’s list, plunging 4.3% to US$0.90.
In response to Coinbase, a U.S.-based cryptocurrency exchange, submitting an amicus brief on Monday in favor of Ripple Labs Inc., the business that utilizes XRP to power its payment system, in its legal dispute with the U.S., XRP dropped 3.3% to US$0.37 but is still up 13% over the previous week. Commission for Securities and Exchange.
