New Delhi: The collapse of the FTX exchange sent crypto markets for their worst seven-day stretch since June 2022, following Terra’s meltdown. A giant hack over the weekend just made things worse.

Bitcoin slipped below the $16,000 mark with a fall of 5%, followed by Ethereum, which was trading below $1,200 after a 6% cut. The pain in altcoins continued to intensify after the severe beatdown.

Barring the US dollar-pegged stablecoins, all other top crypto tokens were in the red on Monday. Solana plunged 12%, whereas Polygon, Dogecoin, Shiba Inu and XRP tumbled 10% each. Tron also lost 9% of its value.

The global cryptocurrency market cap slipped to $810.79 billion, dropping as much as 5% in the last 24 hours. However, the total trading volume jumped about 12% to $60.67 billion.

What’s cooking in India

India based crypto exchange, Giottus, has announced to provide customers with proof of reserves. Vikram Subburaj, CEO of Giottus said that the company was ready to go ahead and publicise its proof of reserves or share ‘the Merkle tree.’
The Merkle tree proof of reserves is a cryptographic data structure that stores transaction data from the blockchain while maintaining privacy – giving users the ability to verify the exchange’s account holdings.

Expert’s take
Prashant Kumar, Founder and CEO, weTrade, said that last week saw one of the worst episodes in the history of crypto play out. The result of the FTX collapse took the crypto market to its lowest since the Terra collapse in June.

“The two largest cryptocurrencies have seen an approximately 25% decline over the past week. Similar trends can be seen for other cryptocurrencies as well,” he added

Global Updates

Institutional investors were souring on cryptocurrencies even before this week. The sudden downfall of Sam Bankman-Fried’s FTX may have permanently damaged their prospects of being included in mainstream portfolios.

Cryptocurrency exchange Binance has stopped accepting deposits of FTX’s FTT token on its platform, its chief executive Changpeng Zhao said on Sunday, urging other rival exchanges to do the same.

The swift collapse of the FTX crypto exchange has sparked an industry push among big rivals to publish proof of their reserves as a means to provide transparency into the assets on their platforms.

Crypto exchange AAX said that it suspended activity, citing a scheduled upgrade that had been delayed by turbulent markets.

Tech View by Proassetz Exchange

Currently, Bitcoin is on a no trade zone as it broke the major support. The next support levels are around $13,000 and $11,000 resistance at $17,000, $18,500 and $22,000. Once a breakout on either side can only provide a better view of trend.

chart-bitcoin (2) (1)

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

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