Large holders of Bitcoin began to sell cryptocurrency

After the onset of the crisis and due to the bankruptcy of the American crypto exchange FTX, a massive movement in bitcoin wallets was provoked. Large players who had a lot of BTC in their reserves began to massively withdraw cryptocurrency to their wallets. We talked about this in another article. If you missed it, you can catch up by following the link .

Along with the massive withdrawal of bitcoins from exchanges, their sale for large amounts was also noticed, which indicates the panic of investors and the desire to save money. Major players who bought BTC at $30,000, $25,000, $20,000 and even $18,000 are now forced to fix their losses, as the cryptocurrency market is now showing not only a strong bearish hand, but is also experiencing hard times in terms of the stability of crypto exchanges.

The fact that institutional investors have decided to sell their digital assets is indicated by various online metrics and analysts. Leading the massive sales is the fall of FTX. On November 7 and 8, a large outflow of institutional funds from the American exchange began and a quick disposal of their FTT token began.

FTX tried to resolve the situation and turned to their colleagues in the shop for help. Their main competitor, Binance, even at one point announced that he was going to take over the American exchange, but subsequently abandoned such an idea due to pressure from regulators.

Sam Bankman-Fried was cornered after the incident and all he had to do was file for bankruptcy and step down as CEO. Soon FTX announced his replacement and John Ray took over as director. So far, the company has not been able to quickly come up with optimal solutions and improve its position, but despite this, the rapid decline in FTT has stopped. Recently, the FTX exchange token hit a low of $1.25 and rose to $1.95. Now quotes are equated to $1.55. In fact, the price, of course, continues its downward movement, but if we compare the rate of the coin’s fall, we can see that it has significantly decreased compared to what we noticed in the period from November 7 to November 16.

Among other problems on FTX, an acute shortage of liquidity in the platform's currencies was noticed. Due to the fact that users had difficulties with the exchange of currencies, in fact, a large outflow of funds began.

Mass withdrawals and sales of bitcoin are also signaled by the Coinbase Premium index. The latter shows a 0.13% decline in instrumental investment in the US after the bankruptcy of FTX. Experts and analysts are confident that this state of affairs will prolong the crypto winter and prevent the cryptocurrency market from growing in the near future.

In light of the events, Bitcoin was able to update its floor price, which was fixed on November 16, 2020. Then the cost of one bitcoin was ~$15,800. Most recently, Bitcoin dipped to $15,682, and at the time of writing, the cost of the main crypto asset is $16,778. Bitcoin capitalization is at the level of $322,000,000,000 while the total market capitalization exceeds $835,000,000,000. For comparison, quite recently the total capitalization of the crypto market exceeded $1,000,000,000,000.