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Bitcoin Falls To A Two-Year Low As The Crypto Market Loses $1.4 Trillion This Year In The FTX Collapse Aftermath


Bitcoin Falls To A Two-Year Low As The Crypto Market Loses $1.4 Trillion This Year In The FTX Collapse Aftermath
Bitcoin fell to a two-year low on Tuesday, as the cryptocurrency market suffered as a result of the collapse of major exchange FTX.
According to CoinDesk data, Bitcoin fell to $15,480, its lowest level since November 11, 2020. At 8:12 a.m. ET, the digital coin had recovered from its low and was trading at around $15,909.00.
The entire cryptocurrency market has lost more than $1.4 trillion in value this year due to issues ranging from failed projects to a liquidity crunch, which has been exacerbated by the collapse of FTX, once one of the world's largest exchanges.
The latest crypto issues arose after Binance CEO Changpeng Zhao announced that his exchange would sell its FTT tokens. The native digital currency of FTX's crypto exchange is FTT.
Binance's move precipitated the demise of FTX, which was once valued at $32 billion. FTX has since declared bankruptcy.
To make matters worse, hackers stole $477 million in cryptocurrency from FTX, the vast majority of which was converted into the digital currency ether. However, hackers have begun to convert that money into bitcoin. Because they are selling ether, the price of ether has been pushed down.
At 8:12 a.m. ET, ether was trading down nearly 2% at $1,109.55.
FTX could have over a million creditors. It owes over $3 billion to just its top 50 unsecured creditors.
Sam Bankman-Fried, the disgraced founder of FTX, stepped down as CEO earlier this month and was replaced by John Ray III.
Ray is considering selling or restructuring FTX's global empire.
Meanwhile, Bankman-Fried is still hopeful that he can broker a deal to save FTX, according to CNBC.
However, crypto prices remain under pressure as investors fear that the FTX collapse will spread throughout the industry.
The collapse of terraUSD, a so-called algorithmic stablecoin, earlier this year sent shockwaves through the crypto world and contributed to the demise of other entities such as hedge fund Three Arrows Capital.
Investors are worried about similar repercussions from FTX's failure.