After some rally this week, the crypto market declined on Thursday. In terms of market capitalization, the price of the largest cryptocurrency Bitcoin opened with a decline of about one percent. On international exchanges such as Binance and CoinMarketCap, bitcoin was trading at a little over $17,730.
The second largest cryptocurrency Ether was down by 2.35 percent. Gadgets 360 crypto price tracker As of 2019, the price of ETH was at $1,291. Stablecoins pegged to the US Dollar declined in price. Tether, USD Coin, Binance Coin, Ripple, Cardano, Polygon, Polkadot and Litecoin were down. The capitalization of the crypto market decreased by 1.12 percent in the last one day to a little over $861 billion. The Organization for Economic Cooperation and Development (OECD) has attributed the major reason for the lack of recovery in the value of the crypto market to institutional investors. OECD has said in a report that institutional investors have sold more than retail investors amid the fall in the crypto market.
Included in major crypto exchanges ftx Bankruptcy has also had a big impact on this market. Due to this, a large number of investors have distanced themselves from cryptocurrencies. Clients’ funds were used by modifying FTX’s software. The exchange’s chief engineer changed the code to allow Alameda Research, the firm of FTX founder Sam Bankman Fried, to sell its assets even if it took a loss on the borrowed money.
This exemption allowed the firm to borrow funds from FTX regardless of the value of the collateral. This change in code has been caught by the US Securities and Exchange Commission (SEC). The SEC reported that Alameda Research was being given credit without any limit. Billions of dollars were loaned to the firm in secret over two years. Troubles for the exchange started last month when its balance sheet was questioned. After this, the customers of the exchange tried to withdraw billions of dollars from it, but most of them could not take their money.