Bitcoin (BTC) to fall to $13,000 amid FTX challenges

On Nov 10, 2022

BTC price plummets below $16k after Binance pulled out from FTX acquisition deal.
Mark Newton believes BTC price might plummet to $13k and possibly below $10k.

Researchers at JPMorgan have predicted that the price of BTC might fall to $13k following FTX liquidation. The FTX disaster began after Binance announced the sales of an undisclosed amount of FTT, FTX’s native token. Panicking investors withdrew their funds from their wallets, forcing the platform to declare insolvency. Binance, through a non-binding letter of intent (LOI), offered to buy FTX. Unfortunately for FTX, Binance reversed its purchase proposal, just as Charles Hoskinson predicted. Consequently, the cryptocurrency market fell drastically.

For the first time since November 2020, the price of BTC fell below $16,000. The world’s largest cryptocurrency by market cap traded at $15,632. JPMorgan researchers believe the price of BTC will fall below its production cost of $15,000 as the FTX drama lingers.

Though BTC currently trades at $16,469.57, many analysts think it will plunge to a lower price. Fundstrat’s head of technical strategy, Mark Newton, believes BTC will test the $13k level before hitting any support. He added that there are possibilities that crypto bears can push BTC price to below $10,000.

There are warnings that possible bankruptcy can set the cryptocurrency industry on fire. An undisclosed source has reportedly stated that FTX needs about $8 billion to clear up its current mess. The CEO of FTX, Sam Bankman-Fried, has confirmed the disclosed amount during a call with a group of investors.

These investors include BlackRock, Temasek, Sequoia Capital, Circle, Ontario Teachers’ Pension Plan, Paradigm, Tiger Global, SoftBank, Ribbit Capital, Alan Howard, Multicoin Capital, and VanEck. Further information from the undisclosed source says the FTX boss admitted he messed up, and he would be grateful if he was helped out of his financial situation.

BTC crash: Hope for FTX after Binance’s exit

FTX seems to be hanging after Binance pulled out of the tentative deal and Sequoia Capital wrote off its entire investment in FTX and its subsidiaries. There are two hopeful bailouts for FTX. Temasek, a global investment company, reached out to FTX’s boss after Binance announced a tentative deal. According to reports, Temasek believes the CZ takeover will make Binance reign supreme in the cryptocurrency world.

However, the spokesperson of the Singapore-based firm did not disclose further information regarding the agreement. The representative said: “Given the ongoing discussions between both companies, it wouldn’t be appropriate for us to comment beyond that.”

Justin Sun, the founder of Tron blockchain, seems to be another option SBF has. In a series of tweets, Sun promised solutions to FTX’s predicament. SBF retweeted this portion of his post:

Further to my announcement to stand behind all Tron token… holders on FTX, we are putting together a solution together with #FTX to initiate a pathway forward.

After Justin Sun’s tweet, the TRX token has been reportedly trading at a premium price of $1 on FTX in contrast to Binance’s $0.06. Sun disclosed that TRX trading on FTX has resumed and the previously impaired withdrawal function will be reinstated soon.