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Is Crypto going to collapse?

Is Crypto going to collapse

Once again, the question is asked again, is the cryptocurrency market close to collapse? Away from the continuous rise of the US dollar against a basket of global currencies and its transformation into one of the sources of investment for most investors in all countries of the world, but the shock received by the “crypto” market after the announcement of the bankruptcy of a famous platform may indicate shocking expectations regarding the future of digital currencies.

FTX, one of the world’s largest cryptocurrency exchanges, has filed for Chapter 11 bankruptcy, while CEO Sam Bankman Fried, one of the most famous names in the cryptocurrency world, has stepped down.

The collapse came just days after Binance, the world’s largest cryptocurrency exchange, abandoned its plans to acquire FTX, saying “the company’s problems are more than we can control or we can help.” Billions of dollars were withdrawn from the “FTX” platform during trading last week, after a report revealed a gap of billions of dollars in the company’s budget.

At the same time, in terms of negative expectations, JPMorgan had predicted a few days ago that the price of the “Bitcoin” cryptocurrency would continue to decline and reach $13,000, with more investors having to cover their exposed positions due to the recent declines.

In terms of trading, and since the highest value recorded by the market last November, the combined market value of cryptocurrencies fell by 73.8 percent, losing about 2362 billion dollars, after the total market value fell from the level of 3200 billion dollars to about 838 billion dollars. at present.

Bitcoin loses $961.8 billion

At the forefront of the losing cryptocurrencies came the “Bitcoin” currency. Since the highest level recorded by the currency last November, it has fallen by 75.5 percent, losing about 51,616 dollars, after its price fell from the level of 68,354 dollars to about 16,738 dollars at the present time, and its combined market value fell by 75 percent, losing about 961.8 billion dollars after it decreased from the level of 1282.8 billion dollars to about 321 billion dollars, accounting for about 40.7 percent of the total market losses.

The “Ethereum” currency, which ranked second in the list of the largest cryptocurrencies by market value, recorded losses of 73.6 percent, losing about $ 3486, after its price fell from the level of 4732 dollars to about 1246 dollars, and its total market value decreased by 74.5 percent. It lost about $447.5 billion, after it decreased from the level of $599.9 billion to about $152.4 billion, acquiring by this number about 19 percent of the total market losses.

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