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Ethereum Drops 8% Overnight After FTX Hacker Sells ETH Holdings

  • FTX hacker reportedly sold over 30k ETH, converting a major portion of the holdings into Bitcoin.

  • Along with ETH, the top ten altcoins have all been corrected by 5-10%.

21-Nov-2022 By: Divya Behl
Ethereum Drops 8% Ov

The world's second-largest cryptocurrency is under heavy selling

pressure on Nov 20 evening.

At the time of writing, Ethereum (ETH) was trading 8% down at a price of $1,128 with a market valuation of $136 billion.

On Sunday, news surfaced that the FTX hacker who stole $600 million from the exchange is transferring his ETH stash to Bitcoin. Last week, the hacker converted all of the stablecoins to Ethereum, making $288 million in ETH.

Citing data from Etherscan, a crypto-journalist reported: “The FTX hacker address (0x59...d32b) is converting a significant sum of ETH to BTC. Today, about 30,000 ETH were converted into RenBTC, and 1070 BTC were transferred to the BTC network.”

Administrators are currently assessing the wreckage inflicted by FTX's bankruptcy. Some of the crypto firm's largest debtors owe it a whopping $3.1 billion. Furthermore, there are rising concerns that more leading companies will fall as a result of the recent crisis.

Last week, it was reported that crypto lender BlockFi is preparing for bankruptcy. Christian Catalini, founder of the MIT Cryptoeconomics Lab, told an American media outlet:

"The FTX issues are a stark reminder of the need for regulatory clarity and a true regulatory framework for cryptocurrency. The excitement and speculation surrounding the minting and trading of tokens have created a massive distraction from developing actual products and services that reach consumers and solve real-world problems."

Ethereum falls short of Bitcoin

The current ETH price correction is also a result of a broader market correction. At the time of writing, the overall cryptocurrency market is down 5.6%, with a market valuation of $833 billion. While ETH is down 8%, Bitcoin is down 3.5% and has fallen below $16,000. However, BTC recovered from the 16k level in the last 3 hours.

Ethereum has been significantly lagging behind Bitcoin in recent weeks. Several analysts anticipate that the recent market sell-off will push the price of ETH below $1,000.

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