- Expectations for a year-end rally have gone into overdrive after the past week’s market upsurge following the October CPI report that was lower than expected.
- Bitcoin and the rest of the cryptocurrency market have both fallen off a cliff in the last few days, dropping more than 20% after a brief price increase when the CPI data came out.
- FTT has been the worst-performing and most-trending cryptocurrency since FTX Token (FTT) announced its voluntary chapter 11 bankruptcy.
- The proof-of-reserves idea has swept the cryptocurrency industry, with more exchanges moving toward greater transparency, as the liquidity problem was a major factor in the FTX crisis.
- DeFi’s perpetual DEXs market turnaround began with dYdX’s 27% price increase and GMX rose 13.1%.
- The Producer Price Index (CPI) data report is due on Tuesday, November 15, and the market is likely to be volatile.
The price of Bitcoin has had a rough week, dropping sharply as markets reacted to what was happening with the troubled exchange FTX. The price of Bitcoin went as low as $15,625 on Wednesday. It was the first time since November 2020 that the largest cryptocurrency fell below $16,000. The BTC price fell 14% in a single day, which was the biggest drop in almost five months. Bitcoin’s drop on Wednesday sent shockwaves through traditional markets. At one point, the ProShares Bitcoin Strategy ETF (BITO) had to stop trading for a short time because BTC futures on the Chicago Mercantile Exchange (CME) were falling, which set off a circuit breaker on the ETF.
Since it was announced that FTX Token (FTT) would be filing for chapter 11 bankruptcy on its own, FTT has been the cryptocurrency that has lost the most money and is the most talked about today. Due to bad news at FTX, the value of the FTT token dropped from around $22 on November 7 to $2.23 on November 14. As trading volume on DeFi markets and dYdX goes up, investors may feel “fear of missing out” (FOMO) and rush to buy the assets that are growing the fastest. In the last three days, the value of DYDX has gone up by more than 20%. When dYdX raised its price by 27%, it started the market turn that DeFi later fueled. GMX (GMX) went up in price by 13.1%.
Even though ETH is getting more attention on Crypto Twitter, the rest of the world seems to care little. More specifically, the number of people searching for this keyword on Google keeps going down. When we talk about Google Trends, we can also say that “cryptocurrency,” “Bitcoin,” and “ETH” are gaining popularity. Since June 2022, Google Trends for all keywords have been going down, but there was a spike recently, and “Bitcoin” is still the most popular. In fact, “ETH” is the least-used term, which is kind of strange.
Google Trends charts during this time period also painted a nearly identical picture, with a slow decline in search interest prior to the price collapse.
Concluding Thoughts:
In the past, strong capitulation events like this have been a sign that the cryptocurrency market has hit rock bottom. This is when the very basics of cryptocurrency starting to be criticized in public by a large number of people. As usual, most of the criticisms that have come up about this event aren’t very important and are just a rehash of the same old fears that have come up in other capitulation events. Even though there is blood in the streets, a lot of people are scared, and there are liquidations going on everywhere, the odds of pot have never looked better. Investors who don’t like taking risks should stay away from digital assets until the market has settled down.
