Bitcoin records fresh market low at $17K, was this the bottom?
The crypto market is trading in the red, with Bitcoin and other cryptocurrencies registering double-digit losses during today’s trading session. The number one cryptocurrency recovers last week’s gains and falls back to a new yearly low.
At the time of writing, Bitcoin (BTC) is trading at $18,200, with a loss of 13% in the last 24 hours and a loss of 11% in the last seven days. Other cryptocurrencies in the crypto top 10 by market capitalization follow a similar trajectory, with Dogecoin (DOGE) showing the highest losses during this period.
Bitcoin Crashes Amid FTX “Lehman Moment”
The crypto market is reacting to the events related to FTX and Binance. Dubbed the “Crypto Exchange Wars,” Binance emerged victorious when FTX confirmed an agreement to surrender its assets, except for FTX.US.
The Sam Bankman-Fried led platform was unable to redeem users’ new withdrawal request. According to reports, the site was missing as much as $6 billion and was forced to cease operations.
Amid this uncertainty, the crypto market and Bitcoin faced tremendous selling pressure. Rumors have surfaced that Alameda, FTX’s trading arm, may be liquidating BTC to cover some of the losses, but the team behind the platform has made no official statement.
There is speculation about the current state of the market, which has been reflected in Bitcoin and other cryptocurrencies. In addition, the US midterm elections add more uncertainty to the mix.
NewsBTC reported yesterday that a Republican victory could be bullish for crypto and digital assets. This party has been more prone to support the industry and crypto projects compared to the Democratic Party.
BitMEX founder Arthur Hayes published his opinion on the future of Bitcoin and the crypto industry. Hayes seems bearish when he announced the acquisition of put options contracts for Bitcoin.
These contracts have a strike price of $15,000, meaning they can exercise if BTC’s price makes a new low and crashes into $15,000 to $14,000 or much lower. The BitMEX founder wrote:
FTX = Lehman
It wasn’t the bottom. $SPX reached 666 in March 2009.
Therefore, $17,500 BTC is at risk.
What about them now…
— Arthur Hayes (@CryptoHayes) 8 November 2022
However, the crypto market has withstood massive stress and multiple capitulation events. A Lehman moment in the industry could signal a bottom, not more downside. In addition, Hayes has publicly stated his bullish stance on the crypto market.
For more insight into today’s price action, check out the video below:
