On Sunday evening, strong selling pressure is affecting the world’s second largest cryptocurrency. At $1,120, Ethereum (ETH), which has a market capital of $137 billion, is trading 8.09% lower as of press time. Reports emerged on Sunday that the FTX hacker, who stole $600million from the exchange, is converting his ETH
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On Sunday evening, strong selling pressure is affecting the world’s second largest cryptocurrency. At $1,120, Ethereum (ETH), which has a market capitalization of $137 billion, is trading 8.09% lower as of press time.
Reports emerged on Sunday that the FTX hacker, who stole $600million from the exchange, is converting his ETH stash into Bitcoin. The hacker converted all stablecoins into Ethereum last week, accumulating $288 millions worth of Ethereum. Colin Wu, a crypto journalist, reported that Etherscan data was used.
The FTX hacker (0x59…d32b), is converting large amounts of ETH into BTC. Today, around 30,000 ETH have been converted into RenBTC and 1070 BTC have been transferred to the BTC network.
Administrators are still evaluating the damage caused by FTX’s bankruptcy. Some of the most prominent creditors owe the crypto company a staggering $3.1 million. There are also growing concerns that other digital outfits could be wiped out in the current crisis.
Last week, reports surfaced that BlockFi, a crypto lender, is in the process of filing for bankruptcy. Christian Catalini, founder and CEO of the MIT Cryptoeconomics Lab, spoke to Bloomberg TV:
“The FTX issues serve as a reminder that crypto regulation is urgently needed.” The speculation and hype surrounding the minting and trading tokens has “created a huge distraction from building actual products or services that reach consumers and solve actual problems.”
Bitcoin Underperforms Ethereum
The broader market correction that led to today’s price correction for ETH is also responsible for today’s correction. As of press time, the broader cryptocurrency market has fallen by 5.6% and is now worth less than $800 billion. While ETH is down 8% as of press time, Bitcoin has corrected over 4% and is now under $16,000
In the past few weeks, Ethereum has been significantly underperforming Bitcoin. Many analysts believe that the recent market selloff could bring the ETH price down to below $1,000.
Courtesy of BloombergAll ten top altcoins have corrected between 5–10%, including Ethereum.
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