FTX Collapse Leaves Total Crypto Market Cap Under $800B, Close to 2022 Low
The debacle involving Sam Bankman-Fried's crypto empire has triggered a slide in cryptocurrency prices that wiped out some $183 billion of value from digital assets this month.
With investor confidence in cryptocurrencies ebbing as a result of the collapse of Sam Bankman-Fried’s FTX exchange, the total market capitalization of digital assets has fallen this month below $800 billion, a level not seen since early 2021, according to data from TradingView.
The latest wave of turmoil in digital-asset markets shaved some $183 billion from the industry market cap. The figure dropped to $736 billion on Nov. 9, the lowest since January 2021.
The decline came as the FTX drama sent prices for bitcoin and other cryptocurrencies into a fresh tailspin. Bitcoin (BTC), the largest cryptocurrency, fell 22% during the seven days through Nov. 13, its worst weekly performance in five months.
Bitcoin now makes up $319 billion worth of the entire cryptocurrency market's capitalization. At the peak of the bull market about a year ago, when bitcoin reached its all-time high around $69,000, its market value was north of $1 trillion.
The entire crypto market capitalization hit the $3 trillion mark then but has been declining since.
The price of bitcoin is down 5% over the last seven days and has been trading in a range of $15,000-$17,000.
During previous market crashes the total market cap of the cryptocurrencies also lost considerable ground. In July 2021, total market cap fell to $1.1 trillion after reaching highs of $2.5 trillion in May that year.
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