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Crypto Market Falls Deeper Due to FTX Domino Effect

Crypto Market Falls Deeper Due to FTX Domino Effect

Andrianus.my.id - The movement of the crypto market this week looks even worse. Observed on Monday (21/11/2022), a number of big cap crypto assets are still trapped in the red zone.

Tokocrypto trader Afid Sugiono said the crypto market was showing increasingly weak performance as a result of the FTX collapse which was starting to be felt in several companies. “Besides that, FTX hackers converted 25 thousand ETH into BTC, causing the price of Ethereum to sink further and experience a significant decline,” said Afid, Monday (21/11/2022).

According to Afid, the value of Bitcoin continues to fall by more than 3%, but is still holding above the support level of US$ 16 thousand. Meanwhile, Ethereum is down more than 7% in the last 24 hours. The decline in ETH had the effect of FTX hackers selling large amounts of ETH, causing retail investors to panic.

“Investors must prepare themselves for the difficult days ahead. The domino effect of the FTX bankruptcy was starting to be felt. Some companies in the crypto industry are slowly starting to be affected, some even give up on the current situation and declare bankruptcy," explained Afid.

Afid added, AAX, which is a crypto exchange with a smaller scale than FTX, suspended withdrawals. Not only AAX, Gemini, which is included in the top ten central exchange versions of Coinpasarcap, had delayed withdrawals in its earn program due to the impact of the suspension of withdrawals made by Genesis.

"Apart from the negative news from some of these companies, investors are still haunted by the prospect of a massive liquidation as a result of the current conditions," said Afid.

On-chain data from Cryptoquant shows a very high amount of inflow into the central exchange . It was recorded that 179,719 Bitcoins were transferred from the external wallet to the wallet exchange .

Afid further explained, the sluggish market was largely influenced by trading volume which was not encouraging, it was seen that the total market cap closed in red again below US$ 800 billion.

“Negative sentiment is still being felt by crypto market players. This is evidenced by the closing of the Bitcoin Fear and Greed Index which is still in the Extreme Fear category and consistently moves below level 30," said Afid.

From technical analysis, Bitcoin is being retested to break the tightest support level at US$ 16 thousand. If it is successfully penetrated, there is a possibility that it could decline to its lowest level at US$ 15,790.

Bitcoin has not shown an aggressive movement after experiencing a sharp decline and forming a temporary low in 2022 as a major support , namely the level of US $ 15,512.

“Meanwhile, ETH is still moving down. The support area at the level of US$ 880-1,128 is the last bastion of defense to hold back the ETH bearish run," Afid concluded.

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