Bitoin, other cryptos resume decline after FTX files for Chapter 11

After a reprieve on Thursday, cryptocurrencies resumed their decline on Friday, spurred by snowballing events at FTX that led to its Chapter 11 bankruptcy filing . Bitcoin ( BTC-USD ), the crypto with the largest market cap, fell 5.2% to ~$16.9K at 10:12 AM ET. Ethereum ( ETH-USD ) slid 6.1% to $1.25K. Cardano ( ADA-USD ) dipped 6.9% , dogecoin ( DOGE-USD ) sank 11%, polygon ( MATIC-USD ) -10% , and solana ( SOL-USD ) -4.4% . In a note to clients, Morgan Stanley analyst Sheenah Shah said bitcoin's price had been "illogically stable in recent weeks given volatility in other markets." "We are in the midst of another deleveraging event in the crypto ecosystem and it is so far having limited spillover to broader equity markets beyond sentiment, as crypto institutions lent to each other," Shah added. She expects another round of crypto quantitative tightening "with creditor exposures revealed in coming weeks." Many crypto-related stocks followed crypto assets down. Riot Blockchain ( NASDAQ: RIOT ) -5.5% , Marathon Digital ( NASDAQ: MARA ) -5.6% , Silvergate Capital ( SI ) -8.8%, Galaxy Digital Holdings ( OTCPK:BRPHF ) -2.0% . Still, a number are catching bids: Coinbase ( COIN ) +7.7% , Bakkt ( BKKT ) +4.8% , Bit Digital ( BTBT ) +2.9% , Bitfarms ( BITF ) +1.3% . Earlier, FTX meltdown rumbles on: Assets frozen by Bahamas regulator , EU operating license halted