Cryptocurrencies looked like jaded coins in November 2022, but after the FTX collapse, Bitcoin and other coins joined the 11-year trend of negative Novembers. A week before the FTX saga, major coins were sitting in comfort zones, with Bitcoin trading at US$20,645 and the global cryptocurrency market capitalisation steadying at US$1.06trn. Investors and traders were looking forward to significant increases in the price of major coins as the festive season knocked. However, with the collapse of the crypto exchange, FTX, a new crypto world order came into being. The FTX collapse walloped the market into a bearish skid in November.

Following the collapse of FTX under the watch of Sam Bankman-Fried (SBF), the global crypto market sunk into troubled waters as top investors and traders lost massive asset values (see chart 1 below).

Chart 1:

Bitcoin price was pushed to a new two-year low of around US$15,500, and other altcoins experienced significant losses. 

Available reports show that FTX's former CEO, SBF approached Binance CEO Changpeng Zhao (CZ) for funds which he gladly obliged to a non-binding deal to buy FTX for an undisclosed amount. However, a day after the announcement, the Binance CEO did a U-turn. The reversal jolted the crypto market as it pointed to the market’s uncertainty as currencies like Bitcoin, Ethereum, Polygon, and other altcoins witnessed massive November selloffs. Amidst the FTX crises, notable companies laid off staff with claims that a small proportion of their stablecoins investments was stored on the FTX exchange (see chart 2 below).

Chart 2: 

Dogecoin (DOGE) was bullish during the last week of October, recording a great inflow after the Twitter owner, Elon Musk, wrote: "Doge to the Moon" on his Twitter page. This raised the price of Dogecoin by 12% from US$0.079 to US$0.089 within one hour of his post. As of November 27, DOGE was trading at US$0.1016, a massive gain from the previous trading price. Analysts further attributed the gains to the promise by the Twitter Owner to adopt Dogecoin as a means of payment on the social media platform before the end of the year. Although some forecasters have predicted that Dogecoin could trade at US$0.205 before the end of the year, the current bearish market has pressured DOGE price to about US$0.0737. Analysts and market watchers remain divided about how Dogecoin would perform if the Twitter owner, Elon Musk, stepped down as Twitter CEO (see chart 3 below).

Chart 3: