Bitcoin falls after topping $18,000 for the first time in over a month, following the Federal Reserve's announcement.
Bitcoin fell on Thursday as investors kept an eye on the effects of FTX as the U.S. Federal Reserve hinted at future interest rate increases.
Following the Fed's announcement, both bitcoin and American stocks fell. Bitcoin and American stock indexes have been correlated.
Investors are also keeping an eye on the effects of FTX's downfall, which resulted in Sam Bankman-Fried, the business's founder, being arrested and the company filing for bankruptcy.
The U.S. Federal Reserve signalled that there might be more interest rate increases in the future, while investors kept an eye on the effects of the demise of cryptocurrency exchange FTX, causing bitcoin to fall on Thursday.
It happened after the world's largest digital currency crossed $18,000 on Wednesday for the first time in over a month. According to Coin Metrics, its price was $17,406.33 during the most recent trading session at a 2% lower rate.
After the U.S. Federal Reserve increased its benchmark interest rate by 0.5 percentage points to its highest level in 15 years and signalled that there will be further increases next year, the price of bitcoin reversed. U.S. stocks also declined.
Although cryptocurrency prices have remained largely stable since the initial FTX-caused crash, market sentiment has remained low as investors follow the ongoing effects of FTX's abrupt collapse, which resulted in Sam Bankman-Fried, the founder of the formerly well-known crypto exchange, being arrested and charged.
With the fall of FTX and the end to Sam Bankman-reign Fried's in the crypto sector, there are only two huge exchanges left that are big enough to actually matter, that being Coinbase and—still the number 1 biggest exchange by trading volume—Binance.
In the meantime, Binance, the biggest cryptocurrency exchange in the world, has seen billions of dollars in client assets leave the system this week due to concerns over its reserves, but data suggests such concerns may be exaggerated.
According to blockchain analytics firm Nansen, the crypto exchange Binance, which may be the only major crypto exchange standing following the FTX crisis, suffered a surge of withdrawals by frightened investors earlier this week totaling roughly $3.7 billion.
Despite the run on the crypto sector as a whole, the crypto firm now has to convince both its clients and its employees that things will work out in the long term. Binance CEO Changpeng Zhao, often known as CZ, stated in a memo to colleagues reported by Business Insider that, despite the headlines, “we are in a strong financial position.” He later added, “Binance will survive any crypto winter.”
Since the crypto industry has had its fair share of ups and downs this year, keeping up with the market is a daunting task. At times like these, bear in mind that you should think long and hard about any investment you plan on moving forward with.
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