The FTX crisis caused the crypto market to come under intense pressure, triggering selloffs in the broader market. Crypto influencers warned that FTX collapse may cause institutional investors to lose confidence and trust in the crypto market.
Crypto exchange FTX recorded massive outflows in crypto assets and FTX Token (FTT) selloffs after news of liquidity issues reached investors. FTX’s plans to seek help from investors and peers failed, which forced CEO Sam Bankman-Fried to file for bankruptcy and resign as CEO.
Moreover, the Coinbase Premium Index indicates that U.S. instrumental investment fell -0.13% after the FTX crisis. Thus, institutional investors probably sold their Bitcoin holdings. This can be confirmed with the Fund Holdings Index, which shows a decrease in the total amount of coins holding digital assets.
Therefore, the recent crypto market crash in May and the selloff amid the FTX crisis impacted the sentiments of institutional investors. The crypto market will likely be sideways in the coming months, rather than a short-term reversal in prices.
Bitcoin price hit low of $15,682 amid the FTX crisis. After the bankruptcy, BTC continues to be under pressure and trades sideways
BTC price is trading at $15,682, down over 1% in the last24 hours. The 24-hour low and high for Bitcoin are $16,430 and $16,787, respectively.