In the last few hours, almost all cryptocurrencies collapsed after the ftx platform bankruptcy, the market lost billions in just less than two days. The price of Bitcoin reached the price of 15 thousand dollars, which is the biggest collapse for it, when it reached this price two years ago and it was on a continuous rise.
The remaining coins lost 10% to 70% of their value in just two days. This is due to the bankruptcy of the FTX trading platform, which has lost more than 6 billion during the previous two days. The signals can be viewed on trading platforms such as Binance and others.
Reasons for the collapse of digital currencies
While the total cryptocurrency market has fallen from $1.5 trillion to nearly $1 trillion after the crash.
Because of numerous misunderstandings or skepticism regarding the actual use case of digital assets, there is a lengthy history of friction between the bitcoin industry and regulators.
Different nations and jurisdictions have a variety of inconsistent policies on how cryptocurrencies are classed as assets and precisely what constitutes a lawful payment system because there is no operational framework for the regulation of the crypto sector.
Many observers think that until a more broadly accepted and understood set of legislation is passed, the mainstreaming of cryptocurrencies cannot occur since the absence of clarity on this issue hinders growth and innovation within the industry.
Investor sentiment has a significant impact on risk assets, and this trend also applies to Bitcoin and other cryptocurrencies. The possibility of unfavorable cryptocurrency regulations or, in the worst case scenario, a complete prohibition has, to this point, a nearly monthly effect on cryptocurrency prices.
Regulators may start to increase severe enforcement following the FTX fiasco, as shown by Germany’s announcement that it is looking into Coinbase’s corporate policies.