Cryptocurrencies face uncertainty, as they await the FTX crash´s effect

It has been a difficult week for the cryptocurrency market. The bankruptcy of FTX dampened the spirits of a market that has faced no major developments during the last seven days. Bitcoin (BTC) falls slightly currently, after rising 0.6% since Thursday, and remains below $17,000; Ethereum (ETH), meanwhile, follows a similar trend and is trying to maintain the $1,200 level. In the last seven days, the two major cryptos have lost around 4% in the markets.

"The effects of the FTX debacle continue to flow through the cryptocurrency industry, revealing other vulnerabilities and weighing heavily on prices, even amid an uptick in broader financial market risks," explained Craig Erlam, a senior markets analyst at Oanda. According to the expert, risks remain "skewed to the downside" amid "immense uncertainty" over what the next developments will be.

Fears of a widespread effect are very real. In fact, analysts, such as those at JP Morgan, warned that many investors are withdrawing their funds from various exchanges such as OKX, Crypto.com or Gemini itself, which in recent days had to freeze cash withdrawals. According to these experts, the poor performance of stablecoins will put more pressure on the prices of cryptocurrencies such as BTC, and they are convinced that "it will be difficult to imagine a sustained recovery of cryptocurrency prices without a halt" to this contraction.

Meanwhile, FTX's new CEO replacing Sam Bankman-Fried, John J. Ray III, charged hard against the "wunderkind" of 'cryptos' in an affidavit made before the Delaware bankruptcy court.

"Never in my career have I seen such a complete failure of corporate controls and such a complete absence of reliable financial reporting," asserted Ray, who previously oversaw the liquidation of Enron, once the largest bankruptcy in the financial markets. "From compromised systems integrity and flawed offshore regulatory oversight, to the concentration of control in the hands of a very small group of inexperienced, unsophisticated and potentially compromised individuals, this situation is unprecedented," he added.

SBF, meanwhile, assured in an interview with 'Vox' that his 'biggest screw-up' was declaring FTX's bankruptcy and charged harshly against regulators, whom he accused of failing to protect clients. It should be recalled that the Securities and Exchange Commission (SEC) and the Department of Justice are investigating FTX, and that Washington is working with the Bahamas to extradite Bankman-Fried for questioning on U.S. soil.

In other market news, there have been few notable movements for altcoins. Ripple (XRP) rose 0.6% in the last 24 hours, and Binance coin (BNB) increases. Dogecoin (DOGE), Cardano (ADA) and Polygon (MATIC) drop. Solana (SOL) fell 5% in the last few hours; it is now worth less than a third of what it did before the FTX bankruptcy.