Do not be surprised if the crypto market goes lower

3 min readJan 1, 2023
Photo by Nathan Bingle on Unsplash

The broader crypto market of was impacted by many collapsed of the crypto hedge funds to crypto exchanges.

FTX likely will have a further impact on the market moving forward.

FTX, a crypto exchange, went from being worth $32 billion to filing for bankruptcy in what many are calling the “Lehman Brothers Moment” for crypto. The collapse of FTX has shaken up the entire crypto space and led to Congress and the SEC investigating what happened.

A timeline of the collapse can be seen here:

November 2 — Coindesk publishes a concerning article about FTX and Alameda Research,
November 6 — Binance sells FTT holdings,
November 8 — Binance announces agreement to buy FTX, November 11 — FTX files for bankruptcy with all of its subsidiaries,
November 14 — BlockFi suspends customer withdrawals. The collapse of FTX has been attributed to liquidity crunch due to Binance selling FTT holdings, along with mishandling customer funds and an alleged U.S. agency investigation.

The crypto market has been volatile since the collapse of FTX. Prices of Bitcoin and other major coins fell sharply following FTX’s bankruptcy. The crypto market has since rebounded somewhat, but investors remain cautious. Regulation is one of the major concerns driving this volatility, as governments around the world are stepping up their oversight of the crypto industry. The SEC’s investigation into FTX, as well as the CFTC’s charges against BitMEX, are examples of this increased regulation. Additionally, the risk of hacks and thefts remains, as evidenced by the recent $477 million in crypto assets drained from FTX’s accounts. All of these factors combine to create a highly volatile market, and one that is difficult to predict.

FTX’s collapse has been attributed to a variety of factors, including a liquidity crunch caused by Binance selling FTT holdings, mishandling of customer funds, and an alleged U.S. agency investigation. The collapse began on November 2 when Coindesk published an article regarding FTX and Alameda Research. The article raised red flags about the company’s practices, leading to a sell-off of FTT holdings by Binance. This led to a liquidity crunch that eventually…