As the cryptocurrency market attempts to recover following a severe sell-off over the last two days, Bitcoin surged beyond $18,000 on Thursday. At 4 p.m. EDT, the cryptocurrency reached $18,200, and at 4.25 p.m., it was trading slightly over $18,000, for a gain of 12.5%.
The price of the biggest cryptocurrency by market cap remains at its lows, not seen since the beginning of the year 2020. The largest cryptocurrency by market cap, Ethereum, was trading at $1,325, up an astounding 19 percent from the previous day.
— Ethereum Fear and Greed Index (@EthereumFear) November 10, 2022
According to statistics from digital asset price tracker CoinMarketCap, the market cap for all cryptocurrencies was up 10.6 percent to $895 billion at the moment. The value of some alternative cryptocurrencies rose by as much as 40 percent in the last day. The token for the struggling cryptocurrency exchange FTX, FTT, experienced a 52% price increase to $3.87, which is far from its yearly high of $65.
Reason behind the Crypto Crash
Concerns about the crypto market’s sensitivity were stoked on Tuesday when exchange FTX requested assistance from competitor Binance due to liquidity problems. On Wednesday, Binance cancelled the agreement.
In light of the recent financial upheaval that led to a precipitous collapse in the cryptocurrency market, the US Department of Justice and the Securities and Exchange Commission (SEC) are conducting an investigation into FTX.
In a series of tweets on Thursday, FTX CEO and founder Sam Bankman-Fried apologised to investors and promised that the business would make “radical openness” in its operations a top focus going forward.
SEC Chair Gary Gensler stated investors should be safeguarded more in the sector, while FTX.US, FTX’s American affiliate, subsequently said that trading might be banned on its platform.