The crypto market has been shaken by the decline in the price of Bitcoin – the world’s largest cryptocurrency. Bitcoin started coming down from $17,800 on Nov 9 to $15,500 on Nov 10, hitting a low not seen since Nov 2020. This was a shock to investors because at this time last year, Bitcoin traded at a record high of over $69,000.
The collapse of Bitcoin has led to the decline of the entire crypto market. Popular cryptocurrencies like Ethereum, Polkadot, Avalanche, Ripple, Cardano, etc. have also seen drops of up to several tens of % within 24 hours. However, investor confidence has somewhat returned as Bitcoin price increased sharply in the past few hours.
Bitcoin rebounded above $17,700 onThursday, then there was a slight drop but compared to the low of $15,000 in the morning of yesterday, Bitcoin has skyrocketed by $2,200 in less than 24 hours.
One of the reasons for Bitcoin to recover comes from the fact that the US has released the Consumer Price Index (CPI) in October. The US CPI in October was recorded at 7.7%, lower than the forecast of 7.9% of economists.
Bitcoin’s price rebound is a positive sign. For many investors, this is the right time to buy Bitcoin in preparation for a new bull run. However, investors need to be very cautious because the root of this collapse comes from the crash of FTX – the largest crypto exchange in the US. Not only known as the world’s second largest crypto exchange, FTX and the investment fund Alameda Research were once the main players creating the driving force for the market. Thus, the collapse of FTX and Alameda Research will entail many consequences.
Some large funds that suffered due to their crash will take steps to purge investments to cut losses and try to find a way to balance. For retail investors, there will be a lot of people who will suffer heavy losses and even lose all their capital. The collapse of FTX and Alameda Research will bring many negative impacts, affecting the general confidence and sentiment of investors in the market.
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