Bitcoin prices had a turbulent week, falling sharply as markets reacted to ongoing developments surrounding troubled FTX exchange, but then recovered and managed to hold onto most of their gains.
The world’s most important currency stood at $20,759.24 around 9 a.m. EDT on Friday, November 4, according to data from CoinDesk.
Later that night, it hit its highest point for the week, soaring to over $21,400, additional figures from CoinDesk reveal.
Over the next few days, the digital asset encountered high volatility, falling to a two-year low of $15,625 on Nov. 9, CoinDesk reported.
[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]
Over the next few days, bitcoin prices rose, hitting over $18,100 yesterday afternoon on CoinDesk, representing an increase of about 16% from the intra-week low of nearly $15,600.
Following this upward move, bitcoin retreated, approaching $17,000 last night and trading at $17,228.50 around 9 a.m. EDT today.
The Ongoing FTX Saga
Bitcoin prices saw these fluctuations as market participants reacted to a series of developments involving FTX, where the uncertain situation of the Bahamas-based exchange seemed to change a bit in a short time.
Earlier this month, CoinDesk reported that Alameda Research, a trading company founded by FTX founder Sam Bankman-Fried, held more than a third of its $14.6 billion in FTT assets, the native token of FTX, or in “FTT collateral”. ”
This development has helped raise concerns about the nature of the relationship between FTX and Alameda, its sister company.
Market participants responded by withdrawing around $6 billion in funds from the platform in a 72-hour window before the morning of Tuesday, November 8, Reuters reported.
Bankman-Fried, along with others he worked with, then began looking for an acquisition partner, contacting various parties, CoinDesk reported.
Changpeng “CZ” Zhao, founder and CEO of Binance, announced on Twitter the same day Binance signed a non-binding letter of intent with the exchange, stating that the purpose of the move was “to fully acquire FTX.com and help cover the liquidity crunch.”
However, less than 48 hours after the start of the due diligence process, around 4 p.m. EST on November 9, Binance announced on Twitter that he wouldn’t buy FTX.
“As a result of the company’s due diligence, as well as the latest news reports regarding mismanaged client funds and alleged investigations by U.S. agencies, we have decided that we will not pursue the potential acquisition of FTX.com” , tweeted Binance’s Twitter. Account declared.
Following Binance’s departure, Reuters reported on Nov. 10 that FTX was seeking up to $9.4 billion in funding, citing an unnamed source who claimed to have direct knowledge of the situation.
FTX files for bankruptcy
FTX Group, which includes FTX Trading Ltd. (FTX.com), Alameda Research and more than 130 affiliates, today announced that it has filed for Chapter 11 bankruptcy protection, according to a company statement posted on Twitter. Bankman-Fried resigned as CEO, allowing John. J. Ray III to take on the lead role.
Ray, an attorney, served as chairman of Enron after the energy giant filed for bankruptcy, according to the Chicago Tribune.
Previously, FTX was valued at $32 billion when it raised $400 million in a Series C funding round earlier this year, according to the company, CNBC reported.
Disclosure: I own bitcoin, bitcoin cash, litecoin, ether, EOS, and sol.