Bitcoin hits 2-year low as $1.4 trillion wiped off crypto market this year after FTX collapse

Bitcoin connected Tuesday deed a two-year debased arsenic the cryptocurrency marketplace takes a bruising pursuing the illness of large speech FTX.

Bitcoin deed $15,480, its lowest level since Nov. 11, 2020, according to CoinDesk data. The integer coin has since bounced from that debased and was trading astatine astir $15,728.33 astatine 4:08 a.m. ET.

The full cryptocurrency marketplace has mislaid much than $1.4 trillion successful worth this twelvemonth arsenic the manufacture has been plagued with problems from failed projects to a liquidity crunch, exacerbated by the autumn of FTX, erstwhile 1 of the world's largest exchanges.

Crypto's latest issues began aft Changpeng Zhao, the CEO of Binance, said his speech would merchantability its FTT tokens. FTT is the autochthonal integer currency of FTX's crypto exchange. Binance's determination sparked the illness of FTX, a institution erstwhile valued astatine $32 billion. FTX has since filed for bankruptcy.

To marque matters worse, hackers stole astir $477 cardinal of cryptocurrency from FTX, the bulk of which has been converted into the integer coin ether. But the hackers person begun to launder that wealth into bitcoin. Because they are selling ether, the terms of ether has besides been nether pressure.

Ether was trading down astir 3.5% astatine $1,089.42 astatine 4:08 a.m. ET.

FTX whitethorn person much than 1 cardinal creditors. It owes more than $3 billion to its apical 50 unsecured creditors alone.

Disgraced FTX laminitis Sam Bankman-Fried stepped down arsenic CEO earlier this period and was replaced by John Ray III.

Ray is looking to sell oregon restructure FTX's planetary empire.

Meanwhile, Bankman-Fried is inactive holding retired anticipation that helium tin broker immoderate benignant of woody to bail retired FTX, CNBC reported.