Investors Flee Crypto After FTX Collapse

The brutal bear market continues, with crypto investment products last week experiencing their biggest outflows in three months, according to a new report. Inflows (investors putting money into crypto products) were experienced only in short Bitcoin funds, which bet on the price of the digital asset going down.
2. The negative sentiment continues from the previous week, when institutional investors bet against crypto in record numbers. The move by investors to cash out stems from the “fallout from FTX.”
3. Crypto markets have been rattled after FTX—once one of the biggest digital asset exchanges—lost billions of dollars of investors’ cash in a quick and violent crash. FTX collapsed after it became apparent that it used client money to make investment bets through Alameda Research, a trading firm founded by the exchange’s ex-CEO Sam Bankman-Fried. After a swift bank run, the company said it did not hold one-to-one reserves of customer assets, which culminated in a freezing of withdrawals and subsequent bankruptcy filing.

By Evey Lovelace

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