Bitcoin exchange rate was able to update its 16-day high

The main cryptocurrency was able to renew its 16-day high and overcome the $17,000 mark for a short time. On the night of November 29-30, Bitcoin showed an increase from $16,400 to $17,000 in a couple of hours. At the time of writing, one Bitcoin is valued at $16,800.

Last week, the main cryptocurrency asset showed a downward movement and reached a two-year low. At the moment, BTC was worth $15,400. This could happen due to the consequences that the market is experiencing after the bankruptcy of the American exchange FTX.

Continuing the theme of the collapse of FTX, it is worth recalling the last court hearing regarding the case of considering the bankruptcy of the American stock exchange. As part of this meeting, Joshua Sussberg, a lawyer, who stated that the collapse of Terra (LUNA), led to the bankruptcy of many companies, including Three Arrows Capital, Celsius Network, Voyager and others, and FTX simply became the next in line.

The BlockFi platform has filed a lawsuit against the American cryptocurrency exchange, accusing the latter of a huge amount of debt in excess of $1,000,000,000. FTX suspended the withdrawal of funds on November 7, and 4 days later BlockFi resorted to the same. The latter reported that they have over 100,000 creditors. After FTX, FTX US and related company Alameda Research ran into trouble, 130 affiliated organizations filed for bankruptcy at once.

According to lawyer Joshua Sussberg, who spoke at the first FTX bankruptcy hearing, the American exchange was originally created with a purpose. He was prompted to such an idea by the fact that the activities of affiliated companies, which subsequently filed for bankruptcy, were initially not entirely clear.

Sam Bankman-Fried, formerly head of the FTX exchange, reportedly used funds from FTX clients to cover the losses of his company, Alameda. Nobody knew about this, because he did it without informing other leaders of the organization. Bankman-Fried used no less than $4,000,000,000 from the funds of the exchange to achieve his goals. In order to carry out the bankruptcy proceedings, Sam, who stepped down as CEO, was replaced by John Ray III, who has a very rich experience in these matters. According to John, in 40 years of practice, he has not seen such a deplorable situation that was in FTX, and he called Sam Bankman-Fried and his team extremely incompetent people.

Also earlier, representatives of the exchange from the Serum decentralized finance sector announced the closure of their project. The reason for this was also the fall of the FTX exchange, with which Serum was directly connected. They were left without support and said that the future of their project was uncertain.

Recent events have negatively affected many exchanges and tokens, and bitcoin was no exception, which is why the flagship cryptocurrency coin sank to a two-year low. Nevertheless, BTC shows excellent stability and most crypto enthusiasts, although they do not rule out a further fall of the coin to the $10,000 mark, still expect Bitcoin to grow in the future.

The cryptocurrency market is in a global downtrend throughout 2022. The bearish cycle began in November 2021 when BTC reached $69,000 and began to fall steadily. Many analysts believe that in a few months the downtrend will come to an end and a new era of ascent will begin. They also believe that the FTX situation has extended the bearish phase.