Crypto markets have stabilized in the past week. However, the fall-out from the FTX collapse continues. In this week’s Crypto Verse, we take you through the big events in the crypto market in the past week and take a look at Bitcoin, the Crypto 10 Index, and Litecoin.
Another domino falls
Another major player in the crypto market has fallen, with BlockFi the latest company to be hit by the FTX collapse. The crypto lender filed for Chapter 11 bankruptcy in the US this week after it was revealed it had “significant exposure” to the failed exchange.
BlockFi had been bailed out by FTX earlier this year, as the plunge in crypto values put strains on its finances, with the lender owing $275 million on the loan it received. It is also suing FTX for shares in Robinhood it says were pledged as collateral days before the exchange’s collapse.
The restructuring of FTX continues, as new CEO John Ray III looks to wrap up the company. FTX has resumed paying staff and contractors, but it remains unknown to what extent creditors will be repaid, with the company owing approximately $3.1 billion.
It remains unclear whether FTX founder and former CEO Sam Bankman Fried will face criminal proceedings for his involvement in the exchange’s failure.
Three cryptos to watch
Crypto prices have stabilised in recent days. Here are three tokens to keep an eye on this week.
The downside momentum for Bitcoin has slowed, though the crypto remains in a clear downtrend. Having broken support at $17,500, the next major level on the downside appears to be around $14,000. There is a short-term bullish divergence emerging on the weekly RSI, with the 20-week moving average a level that rallies have been sold into in the past.
Be the first to comment