When Sam Bankman-Fried's FTX filed for bankruptcy last week, the entire crypto market declined, with the price of Bitcoin dropping below the $16,000 mark.
However, amid the chaos that followed the FTX incidence, institutional investors rushed to purchase the dip in several weak cryptocurrencies. As a result, inflows into cryptocurrency investment products spiked last week.
On November 13, inflows into digital asset investment products totalled $42 million, marking the most significant rise in 14 weeks. The greatest inflows into bitcoin investment products were $19 million, followed by $8.6 million and $5.9 million into multi-asset and Ether, respectively.
However, there were also weekly inflows of $4.8 million into Bitcoin shorts products, showing that investors were simultaneously betting on further deterioration in market conditions.
The crash and burn of FTX also saw the rapid devaluation of FTX Token (FTT) and several other FTX-connected assets. The final straw was the $400 million exchange hack on FTX on top of all its issues.
However, over the last day, something unexpected has happened:
FTX token (FTT) has witnessed over $100 million in inflows in the previous 24 hours, making it the number one trending cryptocurrency on the market according to CoinMarketCap at the time of writing.
Despite the widespread devastation caused by the FTX crash, the native token of the trading platform is currently experiencing a powerful surge in liquidity inflow and price. Even more surprising is how this price rise has no apparent reasons or catalysts.
After crashing from a $3 billion market cap high to $184 million last week, FTT's market cap has made a mini-comeback and even hit a $643 high early on Tuesday.
The buying pressure on FTT has pushed the price of the cryptocurrency in a 40% pump from a $1,25 low to a $1.96 high over the last day.
The price of FTT at the time of writing is $1.82 and now sits at a 36% increase over the last day. However, the cryptocurrency's market cap has added about $120 million in the previous day alone.
It is also interesting to note that during the dip of the FTX-Alameda insolvency issue, the cryptocurrency dropped 80% after already dipping along with the rest of the market in the 2022 crypto winter.
FTT received all of this attention despite significant exchanges like Binance and several others delisting it from their customer offerings.
Overall, however, the price action of FTT on the charts remains bearish.
On the daily chart, the cryptocurrency is still far beneath most of its major moving averages, indicating the bear's firm grip on the cryptocurrency. Despite days passing after the heat of the FTT saga, the RSI still shows hugely oversold conditions and no promise of normalization anytime soon.
Overall, this new uptick in the price of FTT may be the start of a more prolonged correction phase, or it may turn out to be a classic example of a "dead cat bounce."
Disclaimer: Voice of crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.