Aaryamann Shrivastava
FXStreet
- FTX Digital Markets filed for a Chapter 15 bankruptcy in New York on November 16.
- The Australian Securities and Investments Commission (ASIC) announced the suspension of FTX's license until 2023.
- Bitcoin has possibly hit the market bottom as the total supply in profit slipped to the lowest since March 2020.
FTX's collapse continues to spread further, even engulfing its "separate" arm in the Bahamas region. Those impacted by FTX have already faced the consequences, but the recent market crash will most likely mark the end of bearish sentiment.
FTX Digital Markets go down
FTX's Bahamas arm - FTX Digital Markets, filed for Chapter 15 bankruptcy, in the Southern District of New York, on November 16. This filing allows for the representative, FTX Digital Markets, in this case, to proceed with the case in the US courts.
The announcement came days after FTX.com, along with FTX.US and 130 other firms connected to FTX, as well as Alameda Research, filed for Chapter 11 bankruptcy. But it's not just the Bahamas where FTX has lost ground.
The Australian Securities and Investments Commission (ASIC) suspended FTX's Australian Financial Services (AFS) license on November 16 till May 15, 2023. This 18-month ban by the country's financial regulators arrived just as FTX Australia was provided with restructuring services by KordaMentha, an Australian advisory firm.
This is potentially the last of FTX, as the exchange company has come to an end in all the countries where it has holdings. This could also mean that any further development related to the company will likely not have an adverse effect on the crypto market.
Crypto market winter to end?
Fortunately, since a bankruptcy filing and suspension of the license were expected, their impact will probably not extend the crypto winter, assuming there is no wider contagion. This is also because the consistent decline in crypto prices may have led to excessive losses, resulting in Bitcoin experiencing a market bottom.
Bitcoin price total supply in profit fell to a meager 45.9%, the lowest noted figure since the Covid-19 crash of March 2020. As visible on the chart, Bitcoin is currently in the opportune green zone, which is usually indicative of a market bottom.
Bitcoin supply in profit
Trading at $16,708, if the crypto winter ends, Bitcoin will probably not decline any further. Any recovery is likely to move towards $19,000 – and potentially further.
BTCUSD 1-day chart
However, if prices do drop again, BTC will tag $16,455 again and potentially the psychological support level at $15,000.
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.
Recommended Content
Editors’ Picks
Will Dogecoin (DOGE) price pull an XRP and rally 60% next week?
Dogecoin price has been in a tight range bound movement since November 22. However, the recent recovery above the range low looks promising and hints at an explosive move for next week.
SEC Chair Gary Gensler’s latest call signals tough times ahead for crypto players
US Securities and Exchange Commission (SEC) chair, Gary Gensler, has hinted at tough times ahead for crypto players. In his testimony before the House Appropriations Subcommittee on Financial Service and General Government, Gensler advocated for additional infrastructure.
Crypto firms' de-banking escalates as banks reject applications due to liquidity and regulatory concerns
The crypto market has been facing hurdle after hurdle since Q2 2022 when Three Arrows Capital collapsed, which worsened in November 2022 following the bankruptcy of FTX. This led to a number of crypto companies falling.
Making a case for Binance Bicasso NFTs playing catalyst to BNB price recovery, $357 incoming?
BNB price is up three days in a row despite the legal tussle between the largest exchange by trading volume, its CEO Changpeng Zhao (CZ), and the Commodity Futures Trading Commission (CFTC).
Bitcoin: Breaking down key BTC levels to accumulate for Q2, 2023
Bitcoin price shows an interesting outlook as the first quarter of 2023 comes to an end. BTC has shown strength since day one of 2023 and has netted investors approximately 70% in returns.