LAGOS (CoinChapter.com) — Bitcoin the world’s leading digital asset value is down by more than 70% this year as the impact from the dramatic collapse of FTX continued to ripple through the crypto market.
Following the unfortunate series of events that has plagued the crypto space this year, many critics have again risen to predict that Bitcoin among other digital assets is close to its end.
Notably, Bitcoin has not had a particularly good year with Terra’s downfall, Celsius’s bankruptcy, among other catastrophic fiascos. The unpleasant events have caused Bitcoin value and the whole ecosystem of altcoins to crash.
BTC price fell as low as $15,585 this week, the lowest drop since November 10, according to data from Coingecko. Furthermore, so far this year the top crypto market cap has also dropped by almost $600 million. The entire crypto market also dropped significantly below the $1 trillion benchmark as the industry come under pressure following FTX collapse.
The widening fallout from FTX and its impact on the crypto market has given a boost to Bitcoin critics predicting that Bitcoin is heading for a total collapse.
‘Bitcoin’s Collapse Is Imminent’
In a post, Daniel Jones a crypto analyst and the manager of Avaring Capital Advisors argued that Bitcoin’s demise was imminent. He noted that this year’s Bitcoin downtrend is going to continue and is likely heading to new bear market lows.
Comparing Bitcoin to gold and silver, Jones noted that the precious stones have a more active market and will phase out Bitcoin. He indicated that due to the current downtrend BTC utility, supply, and demand will plummet, which will lead to the asset’s eventual collapse.
Additionally, he argued that with the current rising interest rates, worsening economic conditions, and significant pain caused by a lax regulatory environment Bitcoin value is bound to suffer. He said, “I truly believe the best days for Bitcoin and, cryptocurrency in general, are in the past.”
Similarly, pseudonymous crypto analyst Crypto Capo has also noted that Bitcoin’s value is still going to drop further this year. Capo explained that the current rally in the crypto market is meant to trap bulls. He posted that a Bitcoin drop to lower levels will follow suit in the nearest term.
In a Twitter post, he shared how BTC has flipped support at $17,600 into resistance. He predicted that BTC will drop to $12,000 and would be on recovery after hitting his capitulation target. He said:
“What I see: -Technicals looking bad (price below June’s low, indicators bearish, funding reset…) -Same bull traps as always, but even weaker. People falling for them. -Comments like ”you are going to miss the train”. Really? This is not over. Final capitulation is likely.”
Crypto analyst Cred also stated that it’s too soon to make a solid bullish case for Bitcoin. “I understand that argument of relative strength that it’s holding up given the magnitude of what’s happening. But, if you’re going to make a bullish argument, it has to be that,” Cred said.
BTC Is Not Dead
Meanwhile, the crypto community doesn’t seem to be phased by the current downtrend. Changpeng Zhao, Binance CEO, among other top crypto personalities has reiterated their backing for Bitcoin.
In a tweet, CZ said that bitcoin is not dead, as the community is still active. Crypto expert Ben Armstrong who is also the author of catching up to crypto noted that the leading asset has endured a tougher market.
MicroStrategy cofounder Michael Saylor also reaffirmed his support for Bitcoin saying “Never has the mission of #Bitcoin been more important.” Despite the extravagant support, it is worth noting that many investors are withdrawing their funds from exchanges after FTX implosion.
The world’s largest cryptocurrency exchange, Binance reportedly recorded a high amount of Bitcoin and Ethereum withdrawals. Binance saw about 15% of BTC on its exchange pulled from the platform over the past six days, according to data from CryptoQuant.
In addition, a net 125,026 ETH ($155million) and $1.14 billion in stablecoins were withdrawn from Binance over the same period. Binance saw about 15% of Bitcoin on its exchange withdrawn over the past six days, according to data from CryptoQuant. In addition, a net 125,026 ETH ($155million) and $1.14 billion in stablecoins were withdrawn from Binance over the same period.
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