After the FTX implosion, Bitcoin, the most widely used cryotocurrency in the world, is still struggling to scale above its current level. Its price and trading volume fell drastically as a result of the FTX collapse.
A cryptocurrency analyst however predicts that Bitcoin will fall below the $16,000 resistance mark in 2023.
Analyst Speculation For Bitcoin In 2023
A CryptoQuant analyst believes that Bitcoin will fall below the $16,000 resistance mark in 2023.
He further stated that if we determine the type of recession we are in, we will be able to grasp the market trend. He strongly believes that once we know the direction of the recession, we can predict if 2023 would be a worse year for the crypto market than 2022 was.
However, another CryptoQuant researcher examined the market from a different perspective, noting that many long-term investors are now accumulating other cryptocurrencies in addition to Bitcoin.
This has, however, increased the negative sentiment towards the cryptocurrency.
In terms of the network, it was discovered that Bitcoin’s Network Realized Profit/Loss Ratio did not increase following the FTX breakdown in October, indicating that little to no profit was made.
Also read:According to reports, Ethereum has surpassed Bitcoin in terms of transaction volume, with a 50% difference.
FTX Collapse Effect On Bitcoin
The FTX collapse alone had a negative influence on the market. This meltdown began with a liquidity crisis, which was quickly followed by a halt in withdrawal and the corporation filing for bankruptcy. These events alone sent shockwaves through the market, tearing it apart sector by sector.
This event had a significant impact on Bitcoin, the currency at the forefront of the crypto industry, resulting in a reduction in price and trade volume.
The leading currency fell more than 50% from its all-time high of $69,000 in November 2021 to the $20,000 mark in 2022.
During this time span, on-chain analytics revealed massive losses incurred in the space; Investors lost a lot of money as a result of the price drop. Metric on-chain data suggested that many investors and holders were dumping their Bitcoin back into the market.
This heat also affected Bitcoin miners, who suffered considerably as energy costs rose and machinery maintenance became expensive. It was reported that miners sold more than 40% of their reserves to the market in order to profit.
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