Bitcoin (BTC-USD) is heading into the weekend more than 2% down as the effects of the FTX collapse and high-risk areas continue to be affected.
The high price of crypto, which has been shaking since the crypto exchange FTX depositsold in the $15.9K-$17.1K range this week.
Among the supporters of crypto, CEO Binance Changpeng Zhao told CNBC that companies will come out well after the collapse of FTX and additional management may not have prevented the problem. The president of Salvador Nayib Bukele said that FTX is different from bitcoin (BTC-USD) as the advanced crypto system “was created to protect Ponzi schemes”.
New FTX CEO John Ray III blamed the “unprecedented” management of former CEO Sam Bankman-Fried that led to the company’s collapse. Ray, who oversaw Enron’s recovery, said he had never seen “a complete lack of reliable financial information”.
Now, regulators want more control. The US House Banking Committee is scheduled to hold a bipartisan meeting next month to review the FTX collapse. US Senators Elizabeth Warren (D-MA) and Dick Durbin (D-IL) wanted FTX to review its finances.
Also, US Treasury Secretary Janet Yellen said that crypto markets need to be closely monitored, while Federal Reserve Vice Chairman for Supervision Michael Barr said that the US should closely monitor stablecoins.
Cantor Fitzgerald rules and regulations in the coming months will define the industry for years to come, adding that the institutions in the center of crypto will be very important in the establishment of the future.
The FTX crash killed many people last week. Genesis Global Capital, the crypto brokerage firm Genesis, has suspended redemptions and credit initiations as withdrawal requests outnumbered existing ones. Before that, Genesis is said to be seeking a $1B emergency loan from investors.
Cryptocurrency lender BlockFi says it plans to file for bankruptcy protection within days. Hong Kong’s Genesis Block says it will suspend trading operations to recoup its cash flow. Singapore’s sovereign wealth fund Temasek plans to divest its $275M stake in FTX.
In another story, Jefferies said bitcoin mining (BTC-USD) was the least profitable sequentially in Oct. as the average price of coins remained flat while the network hash rate jumped at 13%. “The network hash rate remained close to historic highs until Nov. despite the BTC price crash after the FTX crash,” it added.
Bitcoin (BTC-USD) dipped 0.23% to $16.66K at 4.55 pm ET, while Ethereum (ETH-USD) edge 0.33% more than $1.21K.
SA assistant Tom Lloyd in the analysis said that bitcoin (BTC-USD) was already in a bear market before the FTX bankruptcy and is still moving in the risk zone, looking for support and the next bear market.
The global cryptocurrency market cap is $832.23B, rising 0.09% Thursday, according to CoinMarketCap.
Crypto-related stocks that ended in the red on Friday include: Marathon Digital (MARA) 7%Coinbase (WHAT) -7.2%Riot Blockchain (RIOT) -3.7% and Robinhood Markets (HOOD) -3%.