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FTX Sell-Off to Begin
The Bitcoin market is seeing plenty of volatility this week. The market is reacting to news that bankrupt crypto-broker FTX is set to begin liquidating its assets this week. The now-collapsed broker has major holding of several big coins such as Solana, ETH and Dogecoin among others. The sell-off is feared to cause a fresh leg lower across crypto markets, weighing on sentiment in market leader BTC.
Crypto-Crash Fears
FTX has around $3.4 billion spread across various coins, including almost $300 million worth of BTC. BTC has been under pressure recently amidst the furore around the SEC ruling over proposed BTC ETFs. The SEC essentially ruled that it will delay its approval decision, utilising the full 240-day review period for firms such as BlackRock and several others which applied to launch BTC ETFs. The delay has sapped bullish momentum which had been present in the market upon news of the applications.
Fed Still Key
Looking ahead, the bigger driver for BTC medium-term looks likely to continue to be the Fed and USD flows. If USD weakens through year end of diminished Fed tightening expectations and a growing focus on 2024 Fed easing, BTC is likely to recover higher with any FTX-related drop likely to provide better levels for longer-term buyers.
Technical Views
BTC
The sell off in BTC from YTD highs has seen the market breaking down below the rising trend line and below the 27415 level. Price is now sitting on support at the 24930 level and, with momentum studies bearish, risks are pointed towards a break lower. If we do fall below current support, 21390 is the longer-run downside target.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.