The crypto universe: the FTX fall-out continues

Crypto markets have stabilized in the past week. However, the fall-out from the FTX collapse continues. In this week’s Crypto Verse, we take you through the big events in the crypto market in the past week and take a look at Bitcoin, the Crypto 10 Index, and Litecoin.

Another domino falls

Another major player in the crypto market has fallen, with BlockFi the latest company to be hit by the FTX collapse. The crypto lender filed for Chapter 11 bankruptcy in the US this week after it was revealed it had “significant exposure” to the failed exchange.

BlockFi had been bailed out by FTX earlier this year, as the plunge in crypto values put strains on its finances, with the lender owing $275 million on the loan it received. It is also suing FTX for shares in Robinhood it says were pledged as collateral days before the exchange’s collapse.

The restructuring of FTX continues, as new CEO John Ray III looks to wrap up the company. FTX has resumed paying staff and contractors, but it remains unknown to what extent creditors will be repaid, with the company owing approximately $3.1 billion.

It remains unclear whether FTX founder and former CEO Sam Bankman Fried will face criminal proceedings for his involvement in the exchange’s failure.

Three cryptos to watch

Crypto prices have stabilised in recent days. Here are three tokens to keep an eye on this week.

• Bitcoin

The downside momentum for Bitcoin has slowed, though the crypto remains in a clear downtrend. Having broken support at $17,500, the next major level on the downside appears to be around $14,000. There is a short-term bullish divergence emerging on the weekly RSI, with the 20-week moving average a level that rallies have been sold into in the past.

Bitcoin weekly chart

• Crypto 10 Index

The Crypto 10 Index’s technicals look more constructive. Price is yet to make new lows despite the recent turmoil in the market, with support currently around 5130. There is also a bullish divergence between the price and the weekly RSI, with the 20-week moving average as the first level of technical resistance, and 8000 as the key level beyond that.

Crypto 10 Index weekly chart

• Litecoin

Litecoin is carving out a short-term uptrend. Price is now approaching resistance at the 50-week moving average with 92.50 a key level of resistance above that. The 20-week moving average may invite buyers into the market, with tentative trendline support found around 50.

Litecoin weekly chart