Cryptocurrency market fill by red monday morning because of new rumors

The value of major cryptocurrencies dropped slightly on the morning of November 21 for no particular reason, leading many people to point to the rumors that were circulating recently.

The crypto market is "stumbling" on the first day of the week

The cryptocurrency market on Monday morning, November 21, was in the red, causing many major coins to depreciate slightly.

Bitcoin (BTC) slipped from the $16,000 – $17,000 price range that the coin has been fluctuating for the past week, temporarily bottoming at $15,905 – the lowest value since Nov. 14.

Meanwhile, the world's second largest cryptocurrency, Ethereum (ETH), sometimes lost 8% of its value compared to 24 hours ago, collapsing to $ 1,111.

The overall reduction of the top coins on the market is from 5-10%, clearly influenced by BTC and ETH.

The amount of derivative orders liquidated in the last 12 hours was nearly 110 million USD, with the proportion of long orders accounting for 91%.

Bewildering rumors

It is not clear what information is behind the latest decline in the crypto market. However, on the evening of November 20, ETH began to show signs of being discharged when it was reported that hackers attacked the FTX exchange unexpectedly exchanging 50,000 ETH for more than 3,500 BTC and then dispersing the money to the Bitcoin network.

• Details : FTX attacker unexpectedly converts large amount of ETH to BTC

By the morning of November 21, the crypto community on Twitter continued to spread the latest rumors about the market.

First, the Twitter account of Andrew Parish, the founder of Web3 platform ArcPublic, claims Digital Currency Group owes Genesis Trading $1.1 billion. Genesis Trading is a crypto lending company that announced it stopped withdrawing and offering new loans mid-week as a result of the FTX crash. Meanwhile, Digital Currency Group is Genesis' parent company and has an ambiguous relationship.

Earlier, there was also information that Genesis Trading also tried to raise 1 billion USD before announcing to block withdrawal, but did not receive much response. If true, these rumors suggest that Digital Currency Group and Genesis may be in a worse state than they claim, threatening to affect other companies in the same network such as Grayscale and Foundry mining company.

• See also:  Grayscale's GBTC shares set a record loss of 43% against Bitcoin

Next, founder Paul Graham of Y Combinator, a popular Silicon Valley hedge fund, stated that “a friend of mine of 10 years insists that the crypto industry is about to experience a system-wide breakdown.” Mr. Graham also said that “if I was investing in crypto, this would make me feel extremely nervous.” The fund manager also "disclaims himself" when writing this is purely the words of his "friend of 10 years", so he does not know more details about it.

Graham's statement has been criticized by many crypto users on Twitter, claiming that he is just launching more FUD to confuse the community while the crypto market has experienced many crashes in the past. throughout 2022: from LUNA-UST, to Three Arrows Capital (3AC), to FTX – Alameda and now rumored Digital Currency Group.

Even Ethereum founder Vitalik Buterin copied Graham's "sample text" to mock his "unclaimed statement".

“I am hearing rumors that something important is about to happen. Accept the fact that I'm cool when I socialize with the elite who always know the news first, and help me reinforce that image of superiority myself."

The cryptocurrency market is still very weak at the moment after the rapid bankruptcy of FTX and Alameda, plus the extreme fear of investors, so it is not difficult for unfounded rumors, even in dreams. No matter how confusing and unbelievable it is, it can still easily spread and affect the price line.

FoxCryptoNews advises readers to consider the information carefully before making an investment decision.

FoxCryptoNews summary

Nov 21, 2022