[Bitcoin Now] FTX Fallout Breaks $16,000 Level... "Converted to Disappeared Ethereum"

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Lee Jung-yoon] The price of Bitcoin, the leading cryptocurrency, remains weak as the fallout from the bankruptcy filing of the global cryptocurrency exchange FTX continues.

According to the global cryptocurrency market tracking site CoinMarketCap, as of 11:25 a.m. on the 21st, the price of Bitcoin was recorded at $15,976 (approximately 21.62 million KRW), down 4.35% from the previous day.

The price of Bitcoin has been declining amid the aftershocks of FTX’s liquidity crisis, which ultimately led to its bankruptcy protection filing in court. It is reported that FTX owes $3.1 billion (approximately 4.1921 trillion KRW) to its top 50 unsecured creditors. These creditors are understood to be individual and institutional customers affected by the insolvency. When FTX filed for bankruptcy protection, it stated that the number of creditors was around 100,000. However, FTX’s lawyers reported to the court that the number of creditors could exceed one million.

Meanwhile, the price of Ethereum, the leading altcoin, also plunged sharply. At the same time, Ethereum was priced at $1,115 (approximately 1.51 million KRW), down 8.56% from the previous day. This decline is interpreted as a result of claims that Ethereum disappeared from FTX and was exchanged for Bitcoin. Blockchain analytics firm Chainalysis reported via Twitter that some of the funds leaked from FTX were sent to regulatory authorities, while some were stolen.

On the other hand, according to cryptocurrency data provider Alternative, the Fear & Greed Index, which measures investor sentiment, dropped 3 points from the previous day to 21 points (extreme fear) on the same day. Alternative’s Fear & Greed Index ranges from 0, indicating extreme fear and pessimism about investment, to 100, indicating optimism.