Last month investors pulled a record 91,363 bitcoin worth close to $1.5 billion based on the November average price of around $16,400. In thе first sеvеn dаys of Dеcеmbеr, 4,545 bitcoin, wеrе withdrаwn from cеntrаlizеd еxchаngеs.
Inflation, rising interest rates, and economic uncertainty have caused investors to fear for the safety of their risk assets throughout the year. Now multiple crypto-related companies are facing severe financial difficulties, including insolvency.
In mid-November, Sam Bankman-Fried’s FTX filed for bankruptcy protection. This filing came after an $8 billion hole was found in the balance sheet. Sam Bankman-Fried’s FTX new chief executive John Ray has cited a lack of risk management, and the company has admitted to poor internal controls. The Senate Agriculture Committee will conduct a hearing on Dec. 1 to investigate the FTX crisis, while the House Committee on Financial Services is holding its own FTX hearing starting on Dec. 13.
At the end of November, crypto lender BlockFi declared bankruptcy.
Commodity Futures Trading Commission (CFTC) Commissioner Summer Mersinger recently said one of the critical issues crypto regulators face is establishing proper jurisdiction. To date, Congress has introduced more than 50 bills related to regulating digital assets and blockchain technology.
Bitcoin (BTC), the most widely traded cryptocurrency, has gone down 64 percent this year and is currently trading at around $17,000.