- The FTX downfall had a domino effect on the rest of the crypto market.
- The global crypto market cap dropped to near-$800 billion.
- BTC’s price established a new low for this bear market.
November 2022 will go down in crypto history as a month that traders and investors will want to forget. Perhaps the biggest event to occur last month was the downfall of FTX, which had a domino effect on the rest of the crypto market
The collapse of the crypto exchange, FTX, saw the price of its native token drop, FTX Token (FTT), plummet to just over $1. Prior to the crash, the token was trading at around $25.
Following the news that FTX filed for bankruptcy, the rest of the crypto market slid as investors entered into a selling frenzy. This resulted in the total crypto market cap dropping below $1 trillion, according to CoinMarketCap.
As prices were unable to keep the overwhelming sell pressure at bay, the global crypto market cap reached a low at around $807 billion. However, the figure has risen since then and now stands at $851,5 billion at press time.
The crypto market leader also established a new low for this bear market, after many believed that its low for this bear market had already been printed. As can be seen by the weekly chart for BTC/USDT, the price of BTC dropped to a low of $15,588.00 in the first week of November this year.
Many traders and speculators were under the impression that BTC set its low around 13 June of this year when its price declined to $17,622.
Lastly, the trust that crypto traders and investors had for exchange platforms diminished, and crypto investors opted for self-custody alternatives.
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