Ethereum came under extreme selling pressure on Sunday after the hacker of the FTX exchange disposed of some of its ETH holdings. The move lowered the token price by 8.09%, currently trading at $1,126.
According to multiple reports, the FTX hacker converted a large portion of the stolen FTX funds (30,000 ETH) into Bitcoin, after which the Ethereum price plunged sharply. Reports indicate that the hacker has been converting all stablecoins to ETH over the past week.
According to Colin Wu, a crypto journalist, data from Etherscan shows that the hacker has converted a large amount of Ethereum tokens into Bitcoin. Nearly 30,000 ETH has already been converted to BTC, resulting in about 1,070 BTC being moved into the BTC ecosystem. Also, while regulators continue to assess the damage triggered by the FTX bankruptcy, the latest event has done yet another damage to the Ethereum network.
FTX currently owes more than $3.1 billion, and the stock market cannot find a way to recoup the enormous debt. In addition, there is a growing concern in the crypto community that more exchanges will crash amid the broader market crisis.
Last week, reports surfaced that another crypto lender, BlockFi, is going to file for bankruptcy. Accordingly, the impact of the FTX crisis has a far-reaching impact than the industry had previously imagined.
Notably, different types of NFTs have also come under perssure amid the fallout of cryptocurrency exchange FTX.
Will Ethereum drop below $1,000?
The ETH price correction pushed the second-largest crypto-asset below the rather underperforming Bitcoin. As a result, the broader crypto market cap fell 5.6% to just under $800 billion. While Ethereum fell by 8%, Bitcoin failed to make any progress.
The leading digital asset has corrected about 3% and is currently trading around $16,000. A few weeks ago, ETH was underperforming and failed to surpass Bitcoin in terms of performance despite the completion of the Merger.
Industry experts believe that the current market situation will likely push Ethereum price below $1,000. However, it’s not just Ethereum that is underperforming. All of the top ten altcoins also witnessed drops between 5% and 10%.
Data from Whale Alert shows that crypto whales are carrying around 400,000 ETH from some exchanges. Whales may be taking advantage of the drop in ETH’s price before the price rises again.