Cryptocurrency market faces decline amid global tensions

KUWAIT CITY, May 11: The cryptocurrency market witnessed a decline, dampening investor sentiment amidst global geopolitical tensions, potential monetary tightening in the United States, and subdued inflows into Bitcoin funds traded in the American market, reports Al-Jarida daily.

Bitcoin, the leading cryptocurrency by market value, experienced a 1.86 percent drop to $61,064.30, marking its most significant consecutive loss since October. Ethereum followed suit, dipping by 0.86 percent to $2,972.15, while Ripple fell by 1.56 percent to 51.26 cents. The overall cryptocurrency market cap has plunged by over 17 percent since Bitcoin’s peak in midMarch, totaling $2.26 trillion, reflecting a 1.59 percent decrease in the past 24 hours alone, as per CoinMarketCap and Bloomberg estimates.

CC Data, a digital asset data provider, reported a decline in cryptocurrency trading volume for April, the first in seven months. The total trading volume in both spot and derivatives markets fell by 43.8 percent to $6.58 trillion compared to the previous month’s record of $9.12 trillion.

Meanwhile, FTX, a collapsed cryptocurrency exchange, announced its recovery and proposed a reorganization plan to fully repay most of its creditors. The plan, subject to US court approval, aims to settle disputes with government stakeholders and private individuals without protracted legal battles, as reported by CNN and Al Arabiya Business.

FTX’s tumultuous journey began with its collapse in November 2022, triggering upheaval in the cryptocurrency world. Former CEO Sam Bankman-Fried resigned amidst allegations of fraud and conspiracy, resulting in a 25-year prison sentence in March 2024.

John J. Ray assumed CEO responsibilities, navigating the company through bankruptcy. Despite facing significant challenges, Ray expressed optimism, stating, “We are pleased to propose a Chapter 11 plan that ensures full repayment, including interest, to non-governmental creditors.” FTX revealed the recovery of assets valued between $14.5 and $16.3 billion, with approval potentially enabling 98 percent of creditors to receive approximately 118 percent of their allowed claims.