Here’s What Next For Bitcoin (BTC) Price Amidst FTX Bankruptcy
Cryptocurrencies fell dramatically after ailing crypto exchange FTX filed for bankruptcy and CEO Sam Bankman-Fried resigned. Crypto market capitalization fell 18.3% to $803 billion.
This was an action-packed week, which has had a dramatically dreadful impact on the crypto community. In times of such uncertainty, experts are pitching in to provide an analysis.
How has the FTX crisis impacted the crypto space?
While many challenged that this dispute will have a bigger impact on the dominos, there are others who think that there will be a positive impact on the future. Let’s analyze.
Anonymous analyst, Rekt Capital, has 329,500 Twitter followers and has assured them that Bitcoin’s fortunes would improve in the near future (BTC).
In the future, the price of bitcoin will rise. “But today is not that day.”
Traders should also keep in mind, according to Rekt Capital, that the current bear market will be followed by a bull market and then by another bear market.
Will there be a 50% correction?
Rekt Capital added that people think BTC will never see another -80% Bear Market because it is now mainstream & too mature of an asset. However, let’s not forget there was a -53% correction just months ago.
“In addition to that, he stated that the typical depth of a Bear Market is -84.5%.” After this Bull Market, there is a high probability that there will be one.”
Over one year later and #BTC has retraced almost -78% so far$BTC #Crypto #Bitcoin — Rekt Capital (@rektcapital) November 11, 2022
According to the analyst, bitcoin has lost 78% of its value since October 2021.
An average #BTC Bear Market correction of -84.5% would see price drop to ~$11,000 in this cycle$BTC #Crypto #Bitcoin — Rekt Capital (@rektcapital) November 11, 2022
BTC Price to Drop Below $11K?
According to the popular crypto analyst, based on BTC’s history, it is yet to drop to $11,000. There will be a BTC market bear market correction of -84.5%, which might drop it to -$11,000.
Considering the recent FTX fallout, the trader assumes that the exchanges might collapse during these periods of movement and uncertainty.
“In times of BTC capitulation, manual dollar cost averaging at lower prices may be challenging. Exchanges tend to crash during intense volatility & can be difficult to buy BTC”
During such times, the trader recommends his followers to buy orders beforehand to gain BTC exposure during extreme volatility.
However, he also compares FTX to Mt. Gox. like other fallen exchanges. He points out the pattern wherein previous BTC cycles, it was Bitmex, before that Mt Gox, and now FTX. According to him, Exchange contagion has a history that happening close to the absolute BTC Bear Market bottom. He points out that if people survive such tumultuous times, they will flourish in the upcoming bull market.
He emphasizes that bear markets lead to bull markets, and sometimes to all time highs. As he says “In every cycle, BTC has made a new All-Time High.”
$69,000 is the current all-time high for Bitcoin, and also mentions the possibility of the current price $16,800 dipping even further. However, there’s a bright future; according to his math, it will give large returns in the coming bull market.
BTC is trading for $16,863 at the time of writing.Source