November 2022 will be remembered as one of the worst months in the history of the cryptocurrency industry. October was full DeFi Crypto winter reached unprecedented levels in November. Bitcoin hits a new two-year low as traders speculate about the future of Genesis Global. The entity is suffering as a result of the recent failure of the Sam Bankman-FTX Fried exchange.
FTX’s failure caused a bigger loss to the ailing infant market than Terra’s collapse. The crypto-skeptic senator claimed that FTX’s failure made it “very clear” that the digital asset industry was in “serious trouble.”
The crypto market is on fire
The entire crypto market is suffering. FTX has pushed the market to an all-time low. In general, the DeFi market as a whole is performing poorly. The value of non-fungible tokens (NFTs) plummeted as concerns about the value of cryptocurrencies resurfaced.
The collapse of FTX has affected the value of various cryptocurrencies.Purchasing power has decreased NFTs Collectors have enjoyed in the past. The “Bored Ape Yacht Club” NFT that Justin Bieber bought for his $1.3 million back in January is now worth $70,000.
Migrate from NFT, US Senator Elizabeth Warren, Tina Smith, and Richard Durbin reiterated calls for Fidelity Investments to reconsider launching a Bitcoin (BTC)-linked 401(k) retirement package.
Three senators said the recent drop in FTX was the most compelling argument for the $4.5 trillion asset management firm to reconsider offering bitcoin to retirement investors. He also said:
The recent implosion of cryptocurrency exchange FTX has made it very clear that the digital asset industry is in deep trouble. […] Its value has plummeted since July, when we last raised concerns to you about the very worrying prospect of workplace retirement plans being exposed to Bitcoin. ”
Bitcoin has reached a new low. According to CoinMarketCap, the Bitcoin price today is $15,687.26. Bitcoin is down 2.62% over the last 24 hours. second largest coin ethereumis trading at $1,083.19. Ethereum is down 3.25% over the last 24 hours.
Genesis Global-FTX exposure adds contagion to the market
Genesis Global, a once-powerful cryptocurrency trading and lending firm, reportedly held discussions last week to seek new funding after freezing customer withdrawals. Digital asset traders are watching this incident closely. This is because Digital Currency Group (DCG) also owns Grayscale Investments, and DCG owns Genesis.
Genesis’ financial troubles have forced DCG to sell its assets, which is speculated to have implications for GBTC and the Bitcoin market as a whole, depending on the scenario.
However, in response to bankruptcy claims, Genesis disputes rumors that it is considering an “imminent” bankruptcy filing if it fails to fund the $1 billion gap caused by the collapse of cryptocurrency exchange FTX. chanted.
In light of the recent uncertainty about the future of Grayscale Bitcoin Trusts, trust custodians coin base has released a report detailing assets held on behalf of On November 22nd, after the closing bell, coin base The stock plummeted to about $40. Since its initial public offering on April 16, 2021, Coinbase’s stock has fallen more than 88% of his.
During the peak of the cryptocurrency market in November 2021, Coinbase stock peaked at around $357. According to MarketWatch, Coinbase’s market capitalization has fallen below his $10 billion mark for the first time since going public as a result of a stock price drop. The report noted that the value of the crypto company has risen to $79 billion since its IPO.
Coinbase’s relationship with Grayscale contributes to its low price. In a statement, Grayscale said the company would not provide proof of reservations to consumers.
But others warn that panic isn’t reason enough to circumvent the broad security mechanisms that have kept investors’ assets “safe” for years. suffered a loss of The spread means that there is a significant divergence between the value of the trust’s stand-alone investment and its public market share price.
Bitcoin miners sell out
failure of FTX It has made a huge impact on the global market for digital assets. Multiple cryptocurrency exchanges and lending platforms are facing the effects of this catastrophe. But this wildfire has already spread to several DeFi sectors.
The pressure on Bitcoin miners has never been higher as the BTC price hit another bear cycle low on November 22nd. Charles Edwards, founder of the Caprior Fund, observed Bitcoin miners selling aggressively on November 21st. Based on the chart, sales so far this month have seen him jump 400%.
The current situation for Bitcoin miners is a triple whammy. Mining the next block is getting harder as the hash rate is approaching the maximum. This is good for network security, but bad for miners. Mining difficulty is also at an all-time high, making it harder to compete for the next block. The crypto market is in its worst shape ever. Will the industry recover?