Crypto: Calm surface but strong currents underneath

Market picture 

Bitcoin made another attempt to break above $17.0K on Friday morning but has so far been unable to overcome this strong resistance level, moving around $16.7K. The entire crypto market rose by $4bn to $834bn – a minor swing tempered by the moderately negative Nasdaq Index and a stronger dollar over the day.

The cryptocurrency fear and greed index rose 3 points to 23 by Friday and remains in a state of "extreme fear". Lower market volatility drives the index up even if prices are not rising. 

At the same time, retail investors should be active. Under the smooth surface of a calm market, capital will likely continue to flow out, if not out of crypto-assets altogether, then out of crypto-related companies, drying up their liquidity. And one should be prepared for someone else to go broke shortly.

News background 

According to The Wall Street Journal, crypto lending platform BlockFi is preparing to file for bankruptcy. The company has acknowledged significant exposure to the FTX exchange. Last week BlockFi suspended customer withdrawals.

The collapse of FTX affected too many companies, which could extend the crypto winter to the end of 2023, according to cryptocurrency exchange Coinbase. Many institutional funds are stuck on FTX, causing increased distrust in the industry. Stablecoins dominance has reached a new high of 18%.

Bitcoin will fall heavily in November and hit "the bottom", forecasts Pantera Capital's crypto fund. BTC will then rise to $36,000 ahead of the next halving in March 2024 and continue to grow to a new record peak of $149,000.

According to the average results of a survey conducted by BDC Consulting among 53 cryptocurrency executives, bitcoin will stop the decline at $11,479. Meanwhile, over half of top executives intend to increase their investments in cryptocurrencies and have no plans to cut back.