Cryptocurrency keeps most of the winnings after returning

Bitcoin prices have had a turbulent week, falling sharply as markets reacted to ongoing developments around troubled FTX exchanges, but then recovered and managed to hold on to the bulk of their gains.

The world’s most prominent currency stood at $20,759.24 at approximately 9 EDT Friday the 4th. November, CoinDesk data shows.

Later that night, it hit a weekly high, climbing to more than $21,400, additional CoinDesk figures show.

Over the next few days, the digital asset faced some serious volatility, falling to a two-year low of $15,625 on November 9, CoinDesk reported.

[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]

Over the next few days, bitcoin prices rallied, climbing to more than $18,100 yesterday afternoon on CoinDesk, representing a roughly 16% increase from an intraweek low near $15,600.

After the upward move, bitcoin fell back, approaching $17,000 late last night and trading at $17,228.50 around 9 EDT today.

FTX’s ongoing saga

Bitcoin prices experienced these swings as market participants reacted to a series of developments involving FTX, where the uncertain situation of the Bahamas-based exchange seemed to change quite a bit in a short period of time.

Earlier this month, CoinDesk reported that Alameda Research, a trading firm founded by FTX founder Sam Bankman-Fried, held more than a third of its $14.6 billion in assets in either FTT, the original symbol of FTX, or “FTT security .”

These developments helped provoke concerns about the relationship between FTX and Alameda, its sister company.

Market participants responded, pulling $6 billion worth of funds from the platform in a 72-hour window before the morning of Tuesday, Nov. 8, Reuters reported.

Bankman-Fried, along with other people he worked with, then began looking for an acquisition partner, contacting various parties, CoinDesk reported.

Changpeng “CZ” Zhao, founder and CEO of Binance, announced on Twitter the same day that Binance had signed a non-binding letter of intent with the exchange, stating that the goal of this move was to “fully acquire FTX.com and help cover liquidity crisis.”

However, less than 48 hours into the due diligence process, at approximately 4pm EST on November 9th, Binance announced on Twitter that it would not buy FTX.

“As a result of corporate due diligence, as well as recent news reports of misappropriated customer funds and alleged US agency investigations, we have decided not to pursue the potential acquisition of FTX.com,” a tweet posted by Binance’s Twitter account tired.

After Binance’s demise, Reuters reported on November 10 that FTX was seeking as much as $9.4 billion in funding, citing an anonymous source who claimed to have direct knowledge of the situation.

FTX files for bankruptcy

FTX Group, which includes FTX Trading Ltd. (FTX.com), Alameda Research and over 130 affiliates, announced today that they have filed for Chapter 11 bankruptcy protection, according to a corporate declaration posted on Twitter. Bankman-Fried stepped down from his position as CEO, leaving John. J. Ray III to assume the top role.

Ray, a lawyer, served as chairman of Enron after the energy giant filed for bankruptcy, according to The Chicago Tribune.

Previously, FTX had been valued at as much as $32 billion when it raised $400 million in a Series C funding round earlier this year, according to the company, CNBC reported.

Disclosure: I own some bitcoin, bitcoin cash, litecoin, ether, EOS and sol.