Bitcoin and Ether Face Major Losses as Crypto Market Drops $390 Billion
Bitcoin, ether eye worst weekly rout since FTX collapse as cryptos shed $390 billion
Image: Coindesk
Bitcoin and ether are experiencing their worst weekly losses since the FTX collapse, with the crypto market shedding approximately $390 billion. Factors include Strategy's bitcoin sale, ETF outflows, AI investment competition, and Fed rate hike fears, leading to significant liquidations in leveraged positions.
- 01Bitcoin and ether are set for their largest weekly losses since the FTX collapse in November 2022.
- 02The total crypto market capitalization has fallen to just above $2 trillion, down from nearly $4.2 trillion in October.
- 03Approximately $7 billion in leveraged positions were liquidated, with $5.7 billion of those being long bets on rising prices.
- 04Strategy sold 32 BTC for the first time in four years, raising concerns about future sales to cover obligations.
- 05The U.S. jobs report has shifted expectations towards potential Federal Reserve rate hikes, impacting investor sentiment.
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In a turbulent week for the cryptocurrency market, Bitcoin and Ether are on track for their worst weekly losses since the FTX collapse in November 2022. The crypto market has lost approximately $390 billion, with total capitalization now just above $2 trillion, significantly down from its peak of nearly $4.2 trillion. This downturn follows the sale of 32 Bitcoin by Strategy (MSTR), the largest corporate holder, which has raised concerns among investors about potential further sales. Additionally, heavy outflows from Bitcoin ETFs and increasing competition from artificial intelligence investments have contributed to the sell-off. The situation worsened with a stronger-than-expected U.S. jobs report, leading to fears of Federal Reserve rate hikes. As a result, about $7 billion in leveraged positions were liquidated during the week, marking one of the largest wipeouts in recent times. While prices stabilized over the weekend, the outlook remains uncertain due to ongoing macroeconomic pressures and competition from AI investments.
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The significant losses in the cryptocurrency market may affect investors' portfolios and future investment strategies, particularly in crypto assets.
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