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$180 billion wiped from crypto market in 7 days; More pain ahead?

$180 billion wiped from crypto market in 7 days; More pain ahead?

As the recent drama surrounding FTX, one of the largest cryptocurrency exchanges in the world, continues to send shockwaves across the cryptocurrency sector, digital assets are struggling to recover, and the market is counting its losses.

Indeed, over the period of a single week, the total capitalization of the crypto market has dropped from $1.02 trillion to $838.37 billion, losing $179.13 billion or 17.61% during the observed period, according to the CoinMarketCap data retrieved by Finbold on November 14.

Total 7-day crypto market cap. Source: CoinMarketCap

At the same time, the market cap of the crypto’s largest asset, Bitcoin (BTC), has bled $74.66 billion or 18.73%, declining from $398.69 billion to the current $324.03 billion during the previous week. 

In terms of the price, BTC has dropped 18.98% over the week, although it is recording some very modest daily gains of 0.59%, currently changing hands at $16,778.

Bitcoin 7-day price chart. Source: Finbold

More pain for the crypto market?

In the opinion of technical analyst Matthew Hyland, the crisis is happening because the market as a whole still has problems that have led to one participant’s shortcomings spilling over onto others, as he explained on November 13:

“This whole space has too many single points of failures. If one exchange or person goes down, it shouldn’t cause the entire market to cave in. But that’s the reality of this market currently. It is VERY risky. Hopefully, the powers at be spread out, therefore, if one fails, we are ok.”

According to him, there could still be more pain on the horizon, as he highlighted on November 13:

Earlier, he observed that the Nasdaq index had recorded one of its biggest-ever bounces late last week, adding that its continuation could alleviate the pressure on the crypto market: 

“Better hope it keeps going for the sake of crypto, any pullback likely will just put even more pressure on this market.”

Meanwhile, Finbold has compiled three key pieces of advice on surviving the market crash, such as the one presently engulfing the crypto industry, as offered by the former stockbroker, commonly known as the “Wolf of Wall Street,” Jordan Belfort.

As for the exchange directly involved in the origins of the current crisis, Tesla (NASDAQ: TSLA) CEO had some scathing words for the FTX founder and now-former CEO Sam Bankman-Fried, stating that his “bullshit meter was redlining” when talking to SBF about the Twitter (NYSE: TWTR) acquisition deal.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk. 

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