The global crypto market has started another week at fresh lows near the $16,000 mark as investors and traders struggle to shrug off the shock left by FTX in the aftermath of its collapse. Further losses are underway. The market is in sharp decline if the contagion is not contained.
Bitcoin has taken to test and retest some not-so-great footholds that could trigger a further crash in market value. Analysts believe failure to hold above $15,500 will further push BTC price to the subsequent foothold at $13,575. But this is relatively weak, compared to $11,898. A bear market bottom could occur anywhere between $11,898 and $13,575 from a macro perspective. As such, investors have to be wary of Bitcoin price’s short-term bounces and not be lured by it.
At the time of writing this article, Bitcoin was trading at $16,139 after having lost 4.58% of its value in the last 24 hours. The popular cryptocurrency is down by 22.87% in the last seven days. Ether is holding at $1,192. It’s down by 6.15% in the last 24 hours. Despite the decline, Bitcoin is not doomed by insolvencies brought in by the fall of Sam Bankman Fried’s FTX and Alameda Research. Stockmoney Lizards said the new crisis is not hugely different from liquidity crises from earlier in Bitcoin’s history. Most notedly, the 2016 Bitfinex hack and the March 2020 COVID-19 driven cross-market crash. Stockmoney Lizards described the FTX bankruptcy as a real black swan.
Data from CryptoQuant, an on-chain analytics platform, suggests that the Bitcoin balance of major exchanges is now at its lowest since February 2018.
