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Crypto investors lose over $235 million

Crypto exchanges were under pressure to provide proof of reserves after the collapse of FTX, a reputable digital exchange that filed for…

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Crypto investors lose over $235 million

Despite the weaker buying pressure, the bears are still clinging to the crypto market. Hundreds of millions of dollars worth of digital assets are being sold off on the global markets as a result of a well-known auditing firm’s statement that it would no longer accept any new cryptocurrency clients.

On the final day, there were approximately 94,968 trades liquidated for a total of $235.91 million. The largest single liquidation came from Binance when an investor sold Tether and the leading smart contract platform Ethereum (ETH) for $5.52 million before Mazars stopped operating. This discovery was a “big red flag” at the time, according to former Kraken CEO Jesse Powell (USDT).

Crypto exchanges were under pressure to provide proof of reserves after the demise of FTX, a reputable digital exchange that filed for bankruptcy last month. Former CEO Sam Bankman-Fried is currently being detained in the Bahamas on suspicion of wire fraud and conspiracy to commit money laundering.

Mazars, a French auditing firm that was hired by Binance, the biggest cryptocurrency exchange in the world, last month, is reportedly ceasing its operations out of concern that the general public would not fully understand the reports they compile.

To make sure that a crypto exchange’s reserve information matched the assets of its customers, Mazars was doing proof-of-reserve checks.

The company said in a statement that it has temporarily stopped issuing “Proof of Reserve Reports” to cryptocurrency businesses because it was worried about how the public would perceive them.

“Among the top, five most liquidated cryptocurrencies over the past 24 hours is ETH, the top cryptocurrency asset by market capitalization. Litecoin, the widely used meme coin Dogecoin (DOGE), the native cryptocurrency Binance Coin (BNB), and Bitcoin are all decentralized peer-to-peer networks (BTC)

The digital assets ApeCoin (APE), the smart contract platform Cardano (ADA), and XRP, the asset used to power Ripple Labs’ payment system, are among the other well-known assets sold.

After Bitcoin regained the crucial $18,000 position early in the week, investors thought the minor gains would be crucial for the asset’s possible surge into the new year. The leading cryptocurrency, however, has been unable to hold onto its position, falling to under $17,000.

Things may soon get even worse for bitcoin (BTC) traders looking for encouraging signals on technical charts.
The cryptocurrency’s 50-week simple moving average (SMA) is rapidly declining and seems headed for the first-ever crossing below the 200-week SMA.

According to technical analysis theory, when the two averages intersect negatively, the cryptocurrency market is poised to enter a spiral. The “death cross” is what is called this.

In November of last year, the price of bitcoin reached a record high of $69K. Since then, it has dropped by 75%.
Throughout this bear market, which has turned out to be more severe than previous ones, sellers have been unable to establish traction under the 200-day SMA.

READ MORE: Finance Bill: FG to tax cryptocurrency, games, and other digital assets

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