The embattled FTX exchange has reportedly filed for bankruptcy. FTX has been in the spotlight this week following allegations of mismanagement of funds.

FTX, the West Realm Shires Services and Alameda Research (Sam-Bankman-Fried's trading firm), including 130 affiliated firms have started proceedings under chapter 11 of the bankruptcy law.

The situation worsened when Binance, the largest cryptocurrency exchange by daily traded volume, announced its intentions to liquidate approximately $580 million in FTT, a native token to FTX exchange.

In other news, the founder and CEO of FTX exchange, Sam Bankman Fried (SBF), has resigned from the firm. This follows a move by FTX Australia, a subsidiary of FTX, to engage administrators who have been reviewing the books of accounts to determine whether customer funds are safe.

Meanwhile, the cryptocurrency market is back in the red after bullish sparks were put out by the bloody mess FTX keeps leaving behind. Bitcoin price is down 4.4% to trade at $16,808 while Ethereum price exchanges hands at $1,230.

The largest cryptocurrency could retest its mid-week support at $15,550 before bulls consider another attempt to recoup weekly losses. However, with the immense volatility in the market, declines could stretch to another yearly low.

FTX files for bankruptcy as Sam Bankman-Fried resigns as CEO

BTC/USD daily chart

The key level to watch going forward is support at $15,550. A daily candlestick close below this level could be detrimental to Bitcoin, with analysts predicting a drop to $12,000. On the other hand, holding above $15,550 could see Bitcoin absorb the overarching selling pressure, allowing bulls to push for a trend reversal toward $20,000.

More to follow.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Bitcoin Weekly Forecast: If bulls are back, this is where you can accumulate BTC next

Bitcoin Weekly Forecast: If bulls are back, this is where you can accumulate BTC next

Bitcoin price shows a lack of momentum after an explosive move in the last three weeks. The fourth week has been relatively silent, without a lot of volatile moves.

More Bitcoin News

Ethereum Classic Price Forecast: Do not count on large recovery for ETC in Q1, Q2 of 2023

Ethereum Classic Price Forecast: Do not count on large recovery for ETC in Q1, Q2 of 2023

Ethereum Classic (ETC) saw the headwinds that triggered the massive sell-off of 2022 fade a bit to the background in the first weeks of 2023. That resulted in bulls returning to life after a hibernation of almost five consecutive straight months.

More Ethereum Classic News

Ripple will win the legal battle with US SEC in the Supreme Court: John Deaton

Ripple will win the legal battle with US SEC in the Supreme Court: John Deaton

Ripple, the cross-border remittance giant is likely to win its legal battle against US financial regulator, the Securities and Exchange Commission (SEC) according to crypto proponent John Deaton.

More Ripple News

The real reason why Shiba Inu diamond hands refuse to sell despite 40.6% SHIB price rally

The real reason why Shiba Inu diamond hands refuse to sell despite 40.6% SHIB price rally

Shiba Inu holders who acquired SHIB more than 11 months ago are holding onto their tokens. These holders have refrained from selling their SHIB holdings since December 2021.

More Shiba Inu News

Bitcoin: If bulls are back, this is where you can accumulate BTC next

Bitcoin: If bulls are back, this is where you can accumulate BTC next

Bitcoin price shows a lack of momentum after an explosive move in the last three weeks. The fourth week has been relatively silent, without a lot of volatile moves. While BTC consolidates, other altcoins are rallying left and right, providing massive gains.

Read full analysis

BTC

ETH

XRP