Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.

The vast majority of retail client accounts lose money when trading CFDs.

You should consider whether you can afford to take the high risk of losing your money.

The vast majority of retail client accounts lose money when trading CFDs.
Important Notice - Fraud awareness
Important Notice - Scam alert
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail client accounts lose money when trading CFDs. You should consider whether you can afford to take the high risk of losing your money.
Important Notice - Fraud awareness
Important Notice - Scam alert
The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider. You should consider whether you understand how CFDs / Spread betting work and whether you can afford to take the high risk of losing your money.
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Bitcoin at Risk of Further Downside After FTX Collapse

The Bitcoin price crashed last week after the collapse of the FTX exchange. 

Sam Bankman-Fried’s empire has crumbled, with the founder losing 94% of his net worth in one day last week.

Bitcoin – 4H Chart

bitcoin 4hour chart

Bitcoin has been volatile and can see further volatility this week with a chance to retest the lower levels.

The problem for the world popular cryptocurrency could be forced liquidations or institutional selling.

The problems started on November 2 when Coindesk wrote an article discussing liquidity problems at the FTX sister company, Alameda Research. Denials followed, but Binance said it would dump all its FTT holdings. Binance then announced the acquisition of FTX with a letter of agreement from both parties.

That went sour after the due diligence period, and Binance dropped the planned deal. The price of FTT tokens collapsed and saw the CEO step down after bankruptcy proceedings. Friday then saw a $600 million hack of the FTX exchange, which has created further downside, with BTCUSD trading below the $17k level.

FTX had been regarded as one of the more stable companies in the sector and had helped to rescue firms this year with emergency loans as the Terra fallout rocked them.

Analysts at Wall Street investment bank JPMorgan have predicted it could fall by another 25% due to a “cascade of margin calls.”

Bitcoin has been subject to a crushing bear market over the last year, crashing from $64,000 to its current price of around $16,000.

Bitcoin risks falling to $10,000 if there are further liquidations. Still, it will provide some volatility for traders in the week ahead.

Last Updated: 14/11/2022

This market commentary and analysis has been prepared for ATFX by a third party for general information purposes only. Any view expressed does not constitute a personal recommendation or solicitation to buy or sell as it does not take into account your personal circumstances or objectives, and should therefore not be interpreted as financial, investment or other advice, or relied upon as such. You should therefore seek independent advice before making any investment decisions. This information has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. We aim to establish and maintain and operate effective organisational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. The market data is derived from independent sources believed to be reliable, however we make no representation or warranty of its accuracy or completeness, and accept no responsibility for any consequence of its use by recipients. Reproduction of this information, in whole or in part, is not permitted.


 

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