Bitcoin, ether drop as FTX's bankruptcy filing spooks crypto markets
Quick Take
- Bitcoin was down more than 5% in the past hour at $16,551, while ether lost almost 6% to trade at $1,215.
- Crypto prices had risen on Thursday directly after U.S. inflation data for October was released.
Crypto prices sank on the news that FTX and more than 100 corporate entities affiliated with the firm are filing for bankruptcy.
Bitcoin dropped 5.2% at $16,551, while ether crashed 6.5% to $1,215.
BTCUSD chart by TradingView
Rumors of FTX's insolvency had been swirling in the lead-up to the filing. Former Head of Institutional Sales Zane Tacket revealed via Twitter that the firm had $8.8 billion in liabilities, just $900 million in liquid assets, and $5.2 billion in less liquid or illiquid assets.
RELATED INDICES
The exchange was also seeking up to $9 billion in funding to plug its financial hole, according to a Reuters report.
Prices had been lifted by a positive U.S. inflation data report on Thursday. Crypto prices immediately jumped following the news, as did equities. Bitcoin traded at $16,420 before the release, jumping to $17,540 shortly after, according to data via Coinbase. These gains have now been erased.
Disclaimer: The former CEO and majority shareholder of The Block has disclosed a series of loans from former FTX and Alameda founder Sam Bankman-Fried.
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