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Bitcoin slips under $17K, crypto stocks tumble in reaction to FTX bankruptcy

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Bitcoin (BTC), Ether (ETH) and cryptocurrency-linked shares like MicroStrategy are seeing a pointy downturn after information broke that FTX announced filing for Chapter 11 chapter and Sam Bankman-Fried stepped down as CEO. 

Bitcoin, Ether and MicroStrategy comparability. Supply: TradingView

Crypto-linked shares decline

MicroStrategy’s inventory, led by the outspoken Bitcoin advocate Michael Saylor, is down 32.57% on Nov. 11 over a five-day interval. MicroStrategy holds about 130,000 BTC, and subsequently, its inventory worth is closely correlated with BTC/USD. In the meantime, the tech-heavy Nasdaq has gained 0.79%.

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Mining shares additionally noticed losses on Nov. 11, with the Hashrate Index’s Crypto Mining Inventory Index displaying a 0.14% loss on the time of writing. Prime miners’ market efficiency is far decrease, with Marathon down 4.95%, Riot down 5.74% and Hive down 16.08%.

Mining inventory efficiency sorted by market cap. Supply: Hashrate Index

In the meantime, ETH worth noticed a 22% lower this previous week regardless of Ether changing into deflationary for the first time because the Merge. Over 8,000 ETH has been burned within the final seven days, bringing the yearly charge to -0.354%.

7-day Ether provide statistics. Supply: Extremely Sound Cash

Along with the FTX debacle hindering Ether worth, a mass amount of futures liquidations brought about the value to hit a fo-month low of $1,070 this week.

Bitcoin worth again beneath June lows

Information from Cointelegraph Markets Pro exhibits Bitcoin has misplaced 20% of its worth prior to now week as nicely. As well as, Bitcoin reached a new yearly low of $15,742 because of the FTX collapse.

Bitcoin worth index. Supply: Cointelegraph

Furthermore, Bitcoin’s worth crunch is leading miners to sell at an accelerated charge additional, rising downward strain.

In accordance with Charles Edwards, founding father of the Capriole Fund, Bitcoin miners reached the pink degree on an open-source Bitcoin Miner Promote Stress chart, which exhibits essentially the most promoting in nearly 5 years. 

The uptick in miner promoting has additionally coincided with a Bitcoin whale moving 3,500 BTC for the primary time since 2011.

Is BTC near bottoming?

However analysts are combined on whether or not BTC has bottomed. As an example, dealer Mags sees two potentialities.

He tweeted:

“Two chance : a) Backside is in already ($15.5k) and we entrance run everybody ready for $14k. b) We see a deep re-test & go approach decrease than $14k , perhaps $11.5k – $12k”

Different fashionable analysts resembling John Wick donu201t imagine the underside is in. 

“I gave everybody heads up and mentioned if this decrease finish of the assist broke that I’d quick once more,” he mentioned. “I additionally talked about that I didn’t suppose the lows had been in. I hope you place in your orders forward of time.”