The Bear has taken a toll on the entire cryptocurrency market this year. Whales in addition to the speculators are largely responsible for it.
Their actions have already been mentioned in our previous post. Even possible outcomes of those happenings had been predicted in our previous posts.
Those predictions seem to be coming true one by one. One thing is evident as a result now. A prolonged bear run is on cards even in 2023
FTX and its business partners have to file for bankruptcy as a result. They had no choice but to do so in several countries.
What is more important is that they have filed for Chapter 11 bankruptcy in the United States.
Such a massive scam may keep the market in bear mode for a long time.
Investors may not witness the speedy recovery of the crypto market in 2023 for this reason. We are not talking about short-term recovery.
Most investors may see the market recovering for a short period multiple times in 2023. But a profitable recovery of the cryptocurrency market in 2023 looks like a distant dream.
You are left with no choice but to play the waiting game. Play the waiting game wisely.
Otherwise, you will be in all sorts of trouble.
It could be possible only if you know about the latest developments in the FTX fiasco.
Latest Developments In The FTX Case
Every crypto enthusiast must know about it. Let us tell you a couple of them below:
- A couple of bankruptcy filings have been released on Thursday. Loans up to $4.1 billion to three FTX Executives and Sam Bankman-Fried from Almeda Research have come to light.
- These fillings have also detailed the sources of all the money they received. Moreover, the current whereabouts of all this money has also come to light because of these filings.
- Sam Bankman-fried has been arrested in the Bahamas. He is currently in Bahamian custody. All credit for his arrest goes to American Prosecutors.
- Kudos to the Securities Exchange Commission for filing Defrauding Investors Charges against him. Sam was about to fight extradition to the United States.
- His legal team had declared it in the Bahamas Magistrate Court. A flight risk is another risk he posed, says the CoinDesk Report.
- Bankman has been denied bail for this reason.
- Almost two months’ Jail term has been ordered for him until February.
- A copy of his full testimony that was planned to give to Congress is also available now.
- Former FTX CEO is now blaming Changpeng Zhao, head of rival Binance, for his bad legal advice.
Take a Look At Sam-Bankman-Fried’s Opinion Of Changpeng Zhao (CZ)
Do not forget to read his opinion in detail here before making any decision. Again, multiple business partners of FTX had no choice but to file Chapter 11 bankruptcy because of this contagion. Their list includes but is not limited to Gemini, and BlockFi only.
What Does It Mean For The Cryptocurrency Market in 2023 And the Global Economy?
It has become The Mother of All Economic crises these days. Some countries are also facing the impact of FTX Contagion and North Korea is one of those.
- Successful execution of this contagion became a possibility because of many reasons. A chat Group named “WireFraud” on an end-to-end messaging app named Signal is one of those.
- Australian Financial Review has also confirmed it in its report. Former FTX CEO and other inner circle members were the participants of this group.
- They used this secret End-to-end chat group on Signal in order to send encrypted information related to FTX and its hedge fund.
Every investor needed to know this in order to understand the possible consequences of this contagion.
Things are getting worse for the firm and its former CEO. All Non-US customers of FTX have now hired a law firm.
Their step is for the purpose of ensuring the creation of the Bankruptcy Filing Committee.
Irreconcilable conflict of interest between FTX international customers as well as other creditor groups is a major reason for it.
These international customers have lost more than $1.6 billion because of FTX contagion.
More than $73 million in political donations could also be clawed back.
In other words, the price of all major cryptocurrencies could dip further. Some more things or scams may come to light.
Investors then need to be watchful before investing in any cryptocurrency in the future.
What is more important is the period of jail-term possible for Sam Bankman-Fried. His entire life is at risk because of the possibility of 115 year-long jail term for him.
As a result, Bitcoin’s chances of hitting $100,000 or $200,000 have also become a distant dream. Ethereum’s value may also come down significantly.
We suggest you be wise while exploring investment possibilities next year on the crypto front. Have some patience while playing your investment cards.
All this fuss could also be a great opportunity for you if Bitcoin and Ethereum’s market value falls significantly in 2023. You can then have a great chance to earn some profit. But you may experience a couple of bumps or even losses before the cryptocurrency market in 2023 begins late recovery.
Therefore, be wise, careful, and cool-minded next year. Watch and observe everything closely before making your decisions.
Do you want to have your say about it? Well, the entire comment box is for your then! Let us know your thoughts.
Is There Any Chance of Bitcoin’s Price Reducing Further Because of FTX Contagion?
Its possibilities of it are very high! However, nothing could be said or predicted about it specifically because of the nature of the cryptocurrency market.
What Could Be The Price of Bitcoin And Ethereum In 2023 Because of FTX Contagion?
According to the reports, bitcoin’s price could drop below $10,000 or even $35,000 whereas Ethereum’s price could get reduced to $675 because of it and some more reasons.
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