Bitcoin (BTC), ether (ETH) drop as FTX crash ripples through market

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Bitcoin (BTC), ether (ETH) drop as FTX crash ripples through market
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The collapse of FTX sent shockwaves through the cryptocurrency industry. The price of bitcoin and other major digital coins fell sharply as problems at FTX surfaced.

Jakub Porzycki | Nurphoto | Getty Images

Bitcoin hovered around a one-week low on Monday and other major cryptocurrencies fell sharply as the impact of FTX’s dramatic collapse continues to ripple through the market.

Bitcoin fell 3.6% to trade around $15,990.89 as of 3:40 a.m. ET, according to data from CoinDesk. Ether fell 7% to $1,120.61.

The cryptocurrency market has come under pressure over the past couple of weeks as issues at major exchange FTX came to light.

Since Nov. 6 — the day Binance CEO Changpeng Zhao said his exchange would liquidate its FTT tokens — the crypto market has lost over $260 billion in value.

FTT is the native token of FTX’s crypto exchange and Zhao’s decision to sell FTT triggered the collapse of FTX, which has since filed for bankruptcy. Binance was a rival of FTX.

New FTX CEO John Ray said on Saturday that the exchange was looking to sell or restructure its global empire.

The company owes its major creditors some $3 billion.

Crypto markets remain nervous as it is unclear how the FTX saga will end and if there will be any further contagion in the industry.

Investors have been burned by a number of high-profile crypto failures this year, which have had significant ripple effects.

Earlier this year, the collapse of terraUSD, a type of cryptocurrency known as an algorithmic stablecoin, impacted a number of companies and contributed to the downfall of leading hedge fund Three Arrows Capital.

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