Crypto Keeps Falling on FTX Fallout -- Will It Recover?
Throughout much of 2022, cryptocurrency investors bemoaned the fact that prices of digital assets were highly correlated with the stock market. As major stock indexes fell into extended bear markets, crypto investors seemed to hope that prices of Bitcoin (CRYPTO: BTC), Ethereum (CRYPTO: ETH), and other cryptocurrencies would break away from downturns in the stock market and assert their independence.
Unfortunately, crypto prices have now diverged from behavior in the stock market for a reason that's unfavorable for digital assets: the bankruptcy of crypto-exchange FTX. As more fallout from the FTX bankruptcy becomes evident, some investors worry that digital assets might not bounce back this time around as they have after past downturns.
Major crypto assets continue to see their prices decline. As of early Monday afternoon, Bitcoin prices had fallen 3% in the past 24 hours, briefly moving below the $16,000 mark. Ethereum had fallen an even steeper 6% from the same time on Sunday, flirting with $1,100. Many smaller digital assets were also down single-digit percentages for the 24-hour period.
Source Fool.com
