{"id":53952,"date":"2023-10-03T15:22:54","date_gmt":"2023-10-03T15:22:54","guid":{"rendered":"https:\/\/packetstormsecurity.com\/news\/view\/35084\/The-Crypto-Market-Bears-The-Scars-Of-FTXs-Collapse.html"},"modified":"2023-10-03T15:22:54","modified_gmt":"2023-10-03T15:22:54","slug":"the-crypto-market-bears-the-scars-of-ftxs-collapse","status":"publish","type":"post","link":"https:\/\/www.threatshub.org\/blog\/the-crypto-market-bears-the-scars-of-ftxs-collapse\/","title":{"rendered":"The Crypto Market Bears The Scars Of FTX’s Collapse"},"content":{"rendered":"

Oct 3 (Reuters) – The global cryptocurrency market remains badly scarred following the tumultuous collapse of crypto exchange FTX and other big players last year, with crypto prices, volumes and venture capital investment well below their 2021 peaks.<\/p>\n

Sam Bankman-Fried<\/a>, the former CEO of FTX, stands trial in New York on Tuesday, charged with seven counts of fraud and conspiracy stemming from the exchange’s abrupt collapse in November 2022. He has pleaded not guilty<\/a>.<\/p>\n

FTX was one in a series of industry meltdowns that sent bitcoin crashing to its lowest price since 2020. While bitcoin and other major tokens have partially recovered, the sector remains far from the fever pitch it hit in late 2021.<\/p>\n

Here are five charts that show how the crypto landscape has changed.<\/p>\n

BITCOIN BLUES<\/h2>\n

Bitcoin, by far the biggest cryptocurrency and the chief barometer for crypto market sentiment, has bounced back about 37% since Nov. 1.<\/p>\n

The cryptocurrency was riding high in 2021, hitting a record $69,000 in November that year<\/a>. But as central banks began to hike rates in early 2022, riskier assets like cryptocurrencies began to feel the pain as investors sought better returns elsewhere.<\/p>\n

Bitcoin lost more than 65% of its value last year, pummeled by the collapse<\/a> of stablecoin terraUSD, which led Singapore hedge fund Three Arrows Capital to file for bankruptcy and caused wider havoc in crypto markets.<\/p>\n

Several other companies<\/a> also collapsed, but the fall of FTX pushed bitcoin under $16,000 in November last year. Bitcoin took another hit earlier this year when Silvergate Bank, a popular U.S. partner for crypto companies, said it would shut down.<\/a><\/p>\n

Still, bitcoin has regained almost three-quarters of its value this year on interest from major financial firms including BlackRock and hopes that interest rate hikes are ending. It was trading on Monday at around $28,089.<\/p>\n

“The FTX debacle came at the end of an annus horriblis that had already seen a tech sector collapse, sharply higher interest rates and self-inflicted industry wounds,” said Ben Laidler, global markets strategist at eToro.<\/p>\n

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