Cryptocurrency prices continue to decline, with the price of Bitcoin (BTC) dropping below $16,000 U.S., as investors flee cryptocurrencies in the wake of the FTX collapse.
Bitcoin, the largest cryptocurrency, was down 3.6% and trading at $15,990.89 U.S., according to data from CoinDesk.
The price of Ethereum (ETH), the second biggest digital coin, fell 7% to trade at $1,120.61 U.S.
The cryptocurrency market has come under significant pressure over the last two weeks as the FTX exchange filed for bankruptcy, citing a financial hole in its balance sheet of $8 billion U.S. and as many as one million creditors.
FTX’s newly appointed chief executive officer, John Ray, said on November 19 that the exchange is looking to sell or restructure its assets. FTX owes its largest creditors more than $3 billion U.S.
Investors have grown increasingly worried about contagion from the FTX bankruptcy spreading across the entire crypto industry.
FTX is the latest in a series of high-profile cryptocurrency failures in recent months.
During the summer, the collapse of terraUSD, an algorithmic stablecoin, led to the failure of several crypto companies, including the hedge fund Three Arrows Capital.
The price of Bitcoin has fallen 77% over the last 12 months. In November 2021, Bitcoin hit an all-time high of $68,000 U.S.
