Bitfinex Market Analyst on Bitcoin: Crypto Sell-Off Results in Dow, S&P 500 and NASDAQ Fall

Today’s commentary on Bitcoin from Bitfinex Market Analysts:

“As the digital token space is left reeling amid frenetic selling pressure, the unique premise of Bitcoin as a truly decentralized form of digital cash will become all the more apparent. While there will be much healing to be done after the apparent implosion of FTX, a supposed pillar of the digital token industry, the reasons that brought Bitcoin into being are as clear and resolute as ever.”

The international markets witnessed tremble given a couple of instances happened back to back. Major stock indices like S&P 500, Nasdaq and Dow Jones have seen drops of approx 2.1%, 2.5% and 2% respectively. Meanwhile the broader crypto market also witnessed the similar bad omen with overall market cap dropping more than 60 billion USD from yesterday.

Dow Jones Industrial Average, an index of top thirty listed companies in the United States stock exchange, have performed significantly in October 2022. Last month, the index reported 14% gain in a month—best monthly gain since 1976.

The two major factors are said to influence the stock prices in the stock market—recent fall in every other cryptocurrency including Bitcoin (BTC) and Etheruem (ETH) and uncleared results of midterm elections.

FTX’ Vulnerability Led Crypto Sell-off

This started with a release of key relations between FTX crypto exchange Alameda Research trading firm—both under the leadership of Sam Bankman Fried. It was discovered that the latter holds a significant amount of FTT native tokens in illiquid form.

Exposing the sensitive information led FTT tokens under skepticism making it vulnerable to the market conditions. It continued to grow with time and in a matter of time, fierce competitor and biggest crypto exchange by trading volume, Binance sold its FTT token holdings.

Furthermore the crypto asset went on to witness the trembles in price since the start of the month. But after 8th November 2022, the FTT token price took a steep fall and dropped from approx 26 USD to 2.6 USD.

Election Results not Up as Expected

Wall Street predicted the midterm elections would show a red wave, citing the win of Republicans over Democrats. This is given the investors were expecting the former could win and make efforts towards blockchain future tax and restrict the spending plans.

The election results, however, remained in the fog and so the market was stuck in the dilemma of ending up witnessing a downtrend.

Another prominent reason was significant sell off within the crypto market due to the uncertain situations. Since the start of this month, Bahamian crypto exchange FTX found itself in an awkward position.

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing