11-22-2022 icon

Market report: Bitcoin trade lower and here’s why

By Lucy Adegbe

Bitcoin market trade rate sped up its downward pressure on Monday to attain a new annual low of $15,654.

This move comes after an all-around market decrease, which is a result of investors’ reaction to the suspicion that the FTX crash might affect all areas of the digital currency industry.

Coinglass chart revealed that more than $100 million of long-term leverage was converted to cash, over the weekend, as many investors predicted a sped-up downward pressure if BlockFi and Digital Currency Group (DCG) are compelled to file for insolvency.

Blockchain analysis shows notable losses…

The market rate of Bitcoin is responding to strain brought about by FTX overall pollution, attaining an annual low at the time when reviewers predicted a near end to the bear market.

According to Glassnode, an estimated $1.45 billion was lost for the week of November 12, making it next to the third biggest loss ever recorded. 

Increased interest rates impact BTC value…

As analyzed by the Consumer Price Index information, inflation in the US region saw a 0.6% rise in September when compared to the month before. 

With the anticipated CPI report of November 10, BTC encountered a 12% instability plunge in one day, creating notable lows for the year.

Investors suspect all-round contagion…

DCG associate Genesis Trading seem to have been impacted by the FTX saga as its financial record reflects a hole of over a billion dollar. While the protocol is working to source funds, it has signalled that it may be compelled to declare bankruptcy.

BlockFi, on the other hand, may have to file for insolvency if it is unable to get a buyer for its bid. 

With the current tension, investors appear to have developed cold feet for market outcomes. However, crypto participants anticipate an increase in the value of Bitcoin in the long run, mainly as the banking sector seems to consider digital currency as an option for transactions.