In October, everything seemed to indicate that November 2022 would be a new bullish period for the cryptocurrency market. However, this month, the crypto market went a bit crazy due to the FTX crash. Bankruptcy, hacks, regulations, conspiracy theories, and the closure of several crypto companies were the balance that left the fall of this exchange.
Let’s see how the crypto market behaved with the most relevant news of the month.
On the Cryptocurrency Market in November 2022
We cannot start this summary of the most interesting crypto News of November 2022 without explaining what happened to FTX and how it affected the entire cryptocurrency market.
- The crypto market began to take a hit when FTX announced that it was facing a “significant liquidity crunch” after exchange Binance sold all of its FTX Token (FTT) holdings. Days later, Binance offered to bail out FTX but, after conducting investigations, withdrew the offer.
- By November 8, the FTT token had lost more than 90% of its value in just four days. By that date, the total market capitalization had declined more than 24%.
- This led to Bitcoin (BTC) falling from $21k to $16k in a few days. For the first time since 2020, in November 2022, the cryptocurrency traded below $15k, marking a 20% decline for the month [CoinMarketCap].
- FTX filed for bankruptcy in the United States on November 11, with withdrawals prohibited for anyone outside the Bahamas.
- Soon after, FTX executives announced they had suffered a hack of more than $600 million. For many, this hack was a strategy to hide evidence and facts, such as that its CEO Sam Bankman-Fried (SBF) had a “back door” in the FTX platform that allowed him to move multi-million dollar amounts without alerting anyone.
Ethereum performance in the month
- The following week, the alleged hacker presunutý the stolen funds into Ethereum (ETH), and this cryptocurrency’s price suffered. As a result, the ETH cryptocurrency lost 23% in November [CMC].
- In addition, although a testnet for the withdrawal of ETH staked funds has been activated, there is still no official date for the release of funds.
- But not everything is negative for Ethereum because, on its way to being a deflationary currency, the supply of ETH was in negative numbers at the beginning of the month.
- This month it was also revealed that authorities in the Bahamas may have objednal the hack of FTX and bypassed US authorities handling the exchange’s bankruptcy filing. Hence, the Bahamas administration owns more than $338 million and is one of the biggest Ethereum whales.
Winning and losing cryptocurrencies
- Total market capitalization went from 1,067 billion on November 5 to 786 billion on November 9 —barely four days. Among the most affected tokens is Solana (SOL), which lost 59% in the last 30 days, despite announcing an alliance with Google Cloud. EthereumPoW (ETHW) lost 52%, and Decentraland (MANA) 41%.
- However, some tokens turned out to be winners this month. Thus, Trust Wallet Token (TWT) gained 75% in its price, Litecoin (LTC) gained 37%, and OKB gained 27% [CMC].
- Some centralized crypto exchanges saw the possibility of losing credibility with their clients, so they began to share their proof of reserves. Kraken, Binance, Coinbase, and Poloniex, among other exchanges, topped the list.
- About 130 business entities under the management of FTX Group filed for bankruptcy, including Blockfolio, LedgerPrime, Liquid Global, and LedgerX. Another dozen companies have been harmed, and names like Quantia, Genesis, Multicoin Capital, and Paradigms stand out.
- Cryptocurrency financial services platform BlockFi filed for bankruptcy on November 28, 2022. This company survived the collapse of Terra/Luna only because it received a $250 million credit line from FTX.
Predpisy o kryptomenách
- In regulatory matters, FTX also had a considerable impact. Thus, they accused SBF of collaborating with the US Securities and Exchange Commission (SEC) president, Gary Gensler, to ensure a regulatory monopoly, and investigations were opened in this regard.
- Consequently, representatives of the Bank of England pointed out that the cryptocurrency market needs more regulation.
- For JP Morgan, the entry into force of the law of the European Union of Crypto Asset Markets (MiCA) could be brought forward by recent events in the crypto market and arrive in 2023.
- In this sense, the European Parliament has scheduled an extraordinary meeting for this Wednesday, November 30, to examine the FTX case.
- Russia would be advancing work to create a national asset exchange. To do so, the Russian State Duma would develop a draft with amendments to the Law on Digital Financial Assets.
- On November 23rd, New York banned all Bitcoin mining farms in the state that don’t use 100% renewable energy.
Hacky a bezpečnosť
- Between June and November, Interpol carried out an operation called “HAECHI III” in 30 countries. Thus, Interpol seized $130 million in cryptocurrencies and cash coming from various groups of cybercriminals. In the process, they detained 975 people from different parts of the world.
- Hackers built a malicious extension for Chromium-based browsers (such as Google Chrome, Opera, Brave, Yandex, and Microsoft Edge) to directly take cryptocurrency from wallets and popular crypto exchanges’ passwords.
- The identity of who moved 10,000 bitcoins from the defunct BTC-e exchange in two transactions on November 23 is unknown. The FBI shut down this exchange in 2017, and the funds remained immobile from 2017 until a few days ago.
- Despite the red numbers, the Bitcoin network today is stronger than ever. On November 12, the Bitcoin hashrate reached its ATH, exceeding 343 EH/s.
- In addition, on November 21, a mining difficulty adjustment pushed Bitcoin’s difficulty to its ATH. However, FTX’s pressure on the cryptocurrency market in November 2022 was also felt in Bitcoin mining. This way, the profits of the miners have touched the lowest levels.
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