Bitcoin Prices Drop as Crypto Crisis Deepens

The price of Bitcoin and other cryptocurrencies has plummeted by more than 60 per cent this year following the collapse of FTX.  

Shares of Coinbase, Square-owner Block (SQ), top bitcoin miners Hive (HVBTF) and Riot (RIOT), crypto bank Silvergate (SI) and software firm MicroStrategy (MSTR), led by crypto evangelist Michael Saylor, have all tumbled in the past month, as per Paul Monica.

According to Hany Rashwan, CEO of 21.co, a crypto investment firm, it is very clear that the crypto industry needs to create better products. “There has been a lot of fluff in the past bull market since people were chasing exuberance,” he said.

The price of bitcoin is currently around $17,000, almost “triple where prices were during the depths of the crypto bear market in the early pandemic days of 2020.”

Rashwan said: “How are we still approaching $17,000? That says something. It’s indicative that people are still using cryptos and trying to safeguard assets. Trust hasn’t been shaken to the core.”

Also Read: Sam Bankman-Fried Admits Responsibility for FTX Collapse

John Avery, strategy and product leader for crypto, Web3 and capital markets at FIS argues that: “We are going to see some challenges for the foreseeable future. But we do expect improvements ultimately. This will be a catalyst. There will be growing institutional adoption.”

Fadi Massih, the vice president of the financial institutions group with Moody’s Investors Service on the other hand says: “FTX’s rapid failure will invite further regulatory oversight and scrutiny of the sector, which we expect will ultimately translate into clearer guidelines for crypto market participants…This would likely benefit Coinbase, given its size and more established position in the sector.”