Ethereum fell roughly 2% to plummet below the $1,600-mark as Bitcoin struggled to retain gains and remained below $26,000-levels.

On Wednesday morning, Bitcoin and other cryptocurrency tokens were suffering as traders became alarmed by the prospect of selling pressure from the bankrupt exchange FTX. Market players were considering the prospect that FTX would obtain a bankruptcy court order authorising the sale of assets from its $3.4 billion in cryptocurrency holdings when the market started to decline.

In a joint policy paper on cryptocurrencies, the IMF and FSB cautioned governments against adopting broad bans to reduce the dangers posed by the industry and suggested targeted limitations and prudent monetary policy instead. Targeted limits could be useful, especially for emerging economies.

In spite of a slight increase, the largest cryptocurrency token, which is Bitcoin, was battling to hold gains as it remained below $26,000 levels. Ethereum, its biggest peer, lost approximately 2% of its value and slipped under $1,600. The morning’s price movement in the altcoins was still negative.

For the first time in nearly three months, Bitcoin briefly lost support at $25,000 in the past 24 hours. The price of Ethereum has also fallen beyond its support level of $1,600 and is at around $1,550.

Even though Wednesday’s anticipated FTX unlocking is still a major factor in Soalana’s sell-off, the asset is already down about 50% from its most recent peak in July. The US Producer Price Index (PPI) data, the US retail sales data, and the US CPI data due out tomorrow are a few of the events that investors are anticipated to closely observe.

All major cryptocurrency coins were trading down on Tuesday, with a few outliers. XRP fell by more than 3%, while Polkadot fell by more than 2%. Among the other significant laggards were Polygon, Litecoin, Shiba Inu, and BNB. Dogecoin was one of the gainers, gaining roughly 1%.

The market capitalization of all cryptocurrencies was trading noticeably lower, dropping to the $1.03 trillion mark after sliding about 1% in the previous day. Nevertheless, the overall trade volume increased by up to 65% to $35.17 billion.

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