The Bitcoin price, like all cryptocurrencies, has fallen significantly over the course of the last few weeks. Nevertheless, it has remained surprisingly resilient.
The FTX collapse has wrought chaos over the industry, and many in the space have suffered significantly because of it.
Bitcoin could continue to go lower
It is possible that the Bitcoin price continues to fall lower, with many predicting that the price will continue to fall to as low as $11k.
There are many companies that have been affected by the decline of FTX, from venture capitalists such as Sequoia to hedge funds like Ikigai, and many with exposure to FTX have now been completely bankrupted.
It is therefore quite feasible that the price of Bitcoin could go lower as investors are forced to sell their Bitcoin to cover margin calls, and because the chaos caused by FTX has frightened a lot of people out of the industry.
There aren’t many sellers left – the Bitcoin price is resilient
One of the positives that ought to be considered for those bullish on the price of Bitcoin is the fact that there isn’t that much more Bitcoin to be sold on the market.
According to on-chain analytics, there is currently no more Bitcoin held on the FTX exchange, meaning that even if they are forced to sell a lot of their assets to cover their losses, they won’t be able to sell any more Bitcoin on the market.
Plan B came to Twitter to share his thoughts on the current state of the markets, particularly that the recent price action in the markets. Particularly, he believes that the stock to model is still generally in the right direction, but that a series of black swan events have created a generational buying opportunity, with the price significantly below where it otherwise would have been.
War and yet another exchange default currently put #bitcoin off its 14-year growth track. But in the long run absolute digital scarcity will determine bitcoin's path forward. And 2024 halving is on the radar. pic.twitter.com/QKe6uIMjVw
— PlanB (@100trillionUSD) November 17, 2022
Growing regulatory clarity
One thing that ought to be bullish for Bitcoin is the coming regulatory clarity, for which there has been growing demand following a string of exchange mismanagement.
For the altcoin space, coming regulation could be hugely problematic, as the overwhelming majority of altcoins are designated as securities by the SEC.
However, for Bitcoin, the rising degree of regulation, and the legal distinction between a digital commodity and a digital security, means that the Bitcoin price ought to perform exceptionally well moving forward.
All things considered, the collapse of an exchange as large as FTX, rising interest rates, war in Ukraine (and potentially soon Taiwan), the Bitcoin price has been extremely resilient, and in percentage terms hasn’t performed any worse than previous bear markets.
- How to Buy Bitcoin – Beginner’s Guide
- Bitcoin Price Prediction – Can Bitcoin Retake $20k Any Time Soon?
- Is it Too Late to Buy Bitcoin in 2022?
Dash 2 Trade - New Gate.io Listing
- Also Listed on Bitmart, Changelly, LBank, Uniswap
- Collaborative Trading Platform Token
- Featured in Bitcoinist, Cointelegraph
- Solid Proof Audited, CoinSniper KYC Verified
- Trading Community of 70,000+ Members