Bitcoin Hits Two-Year Low As Crypto Market Loses $1.4 Trillion

The price of Bitcoin (BTC) has hit a two-year low as the selloff in digital assets and tokens accelerates following the bankruptcy of cryptocurrency exchange FTX.

Bitcoin fell to $15,480 U.S., its lowest level since November 11, 2020, according to data from CoinDesk. Twelve months ago, Bitcoin was trading at an all-time high of $68,000 U.S.

The entire cryptocurrency market has lost $1.4 trillion U.S. in value this year as the industry has been plagued by a wave of bankruptcies and liquidity crises. The collapse of FTX is the latest and biggest debacle to hit the industry, sending ripple effects around the world.

Ethereum (ETH), the second largest cryptocurrency, was trading down 3.5% at $1,089.42 U.S. Ether’s value has declined 71% so far in 2022.

Prices for other digital coins and tokens also continue to fall on fears that the FTX collapse could cause contagion to spread across the entire industry.

FTX filed for bankruptcy on November 11 due to $8 billion U.S. in losses. In a private funding round earlier this year, the crypto exchange was valued at $32 billion U.S., making it one of the biggest entities in the sector.