Bitcoin shows resilience in the face of FTX collapse, but crypto industry worries persist
- Bitcoin has so far weathered the bankruptcy of BlockFi this week, staying around US$16,500
- The crypto world has been watching for further fallout from the FTX bankruptcy, with many related firms being hit by the contagion
Worries about contagion from the implosion of digital-asset exchange FTX clouded a rise in bitcoin and other cryptocurrencies Tuesday.
The largest token rose as much as 2.1 per cent and was trading at about US$16,485 as of 10:23am in London. Second-ranked Ether also posted gains, while meme token Dogecoin surged 10 per cent at one point.
The crypto world is now nervously watching for further fallout from FTX, with the spotlight trained on the likes of struggling brokerage Genesis.
“The credit contagion is far from over,” said Cici Lu, founder at Venn Link Partners, a crypto consultancy. There’s “still very low visibility, in the second and third layers of counterparty risk, in terms of who’s exposed to what”, Lu added.
Bitfront, a crypto exchange backed by Japan’s social media giant Line Corp, said it’s shutting down amid industry challenges but indicated the step isn’t connected to the collapse of FTX.
Bitcoin chart patterns continue to flash warning signs about the token’s outlook. An analysis based on plotting sessions when the token moves up or down by at least 10 per cent, a so-called point and figure study, signals the coin is at risk of testing support levels running as low as about US$10,000.