Proactive Investors - Bitcoin and Ethereum continue to lose ground as market players remain sensitive following the FTX fallout.
Bitcoin, the largest coin by market cap, lost 4.22% to US$16,010 in the last 24 hours, while Ethereum faded 8% to US$1,121.
According to Naeem Aslam, a market analyst at Avatrade, Bitcoin and Ethereum had another tough weekend and “the market players are still very much concerned about another domino effect”, albeit for now traders are optimistic the worst is behind them.
“The dollar strength and the adverse FTX news flow will still determine the price of BTC,” Aslam added.
However, there could be more bad news for crypto institutions over the coming days, according to Ipek Ozkardeskaya, a senior analyst at Swissquote Bank.
Reports suggest that FTX owes more than US$3bn to its unsecured creditors, with 10 of the claims more than US$100mln each, which could spell bad news for some of the other players, such as Binance and Crypto.com.
On Binance and Crypto.com, the two exchanges suspended deposits of dollar-backed stablecoins before the weekend.
“The common denominator between USDC and Tether is that they are both based on Solana’s blockchain, and Solana is under threat due to its close ties to FTX,” said Ozkardeskaya.
“And the fact that the major stablecoins will no longer be available on some major exchanges also raises questions about the stability and the reliability of Solana after the FTX collapse.”
Among some of the altcoins, Solana fell 10% to US$11.69, Cardano lost 7% to US$0.30 and XRP fell 8% to US$0.353.