BTC - Why Bitcoin Ethereum and Most Cryptocurrencies Dropped on Friday Morning
The week has been dominated by crypto exchange FTX's rapid decline , and the week is ending with the biggest news of all. FTX Group has filed for Chapter 11 bankruptcy in the U.S., and that puts "approximately 130 additional affiliated companies" into the proceedings. This includes FTX.com and FTX US, which are separate entities.
The impact on cryptocurrencies has been widespread. At 11:30 a.m. ET, Bitcoin (CRYPTO: BTC) is down 3.8% in the last 24 hours, Ethereum (CRYPTO: ETH) is down 4.9%, and Dogecoin (CRYPTO: DOGE) has fallen 8.8%. These are actually some of the best performers; tokens like ApeCoin (CRYPTO: APE) and FTX Token (CRYPTO: FTT) are down 12.1% and 26.4%, respectively.
Investors are worried about two major impacts. The first is that some of FTX Group's subsidiaries, like Alameda Research, will be liquidating assets, and that will likely push prices lower. That's been happening all week, but it could continue for months as the companies are restructured.
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Why Bitcoin, Ethereum, and Most Cryptocurrencies Dropped on Friday Morning