• FTX Japan will be developing its own system to ensure enable customers to withdraw their assets.
  • According to a court filing, FTX owes almost $3.1 billion to 50 of its biggest creditors.
  • Bitcoin price is teetering at the edge of $16,000, and a fall below its immediate support could push it to $15,000.

FTX clients have been facing struggles on every front ever since the company filed for bankruptcy on November 11. However, the cryptocurrency exchange’s Japanese arm is doing all in its power to do right by its customers. The question, however, is whether or not the broader impact of this development would change the trajectory of Bitcoin price.

FTX Japan gives good news

FTX Japan was among the 130 companies that filed for bankruptcy on November 11 following the exchange’s collapse. The filing was the result of FTX facing a liquidity crisis worth about $8 billion that emerged following Binance’s dumping of its FTT holdings. 

However, FTX Japan stands above its sister corporations as the exchange announced that it is preparing to resume customer withdrawals. In an interview with NHK, an unnamed official said that the withdrawals remain on hold because FTX Japan uses the same system as its parent company, which remains suspended. 

Thus, FTX Japan is going to develop its own system, which will allow customers to make their withdrawals. The company held about 19.6 billion yen ($138 million) in cash and deposits as of November 10, when Japan’s Financial Services Agency (FSA) asked the exchange to suspend operations.

This development comes 48 hours after FTX’s announcement of selling and reorganizing some of its companies to recoup funds for returning users’ assets. FTX Japan is also expected to be one of those companies, although no confirmation about the same has been received yet.

This move by FTX would be of some benefit to its creditors, which its previous court filings reported to be in the amount of more than one million. According to another court filing, the top 50 of these creditors alone are collectively owed almost $3.1 billion.

As reported by FXStreet, FTX’s former CEO, Sam Bankman-Fried (SBF), reportedly regretted filing for bankruptcy. SBF believed that had he been given more time, the executive could have raised more money and resumed the withdrawals to end its $8 billion liquidity crisis in a month. 

Bitcoin price takes another dive

Bitcoin price continued to take a hit as the cryptocurrency fell to trade at $16,007 on November 21. At the moment, BTC is moving right above its immediate support at $15,807.

Positive developments, such as the abovementioned FTX Japan-related, could induce some bullish momentum in the crypto market. If Bitcoin price leverages the same, it could retrace its steps to $16,607, which acts as the immediate hurdle en route toward $17,081. If BTC were to reclaim $17,801, it could ease the immediate pressure.

BTC/USD 4-hour chart

BTC/USD 4-hour chart

Nevertheless, the persisting fear could extend the king coin’s downfall and result in Bitcoin price losing its immediate support at $15,807. This would invalidate the bullish thesis, and BTC could initiate a crash to $15,000, which acts as the psychological support level.


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


Recommended Content

Editors’ Picks

Zilliqa price poised for a rally on positive on-chain data; bullish technical indicators

Zilliqa price poised for a rally on positive on-chain data; bullish technical indicators

Zilliqa price has broken above a falling wedge pattern, indicating a shift in market structure from bearish to bullish. Bullish divergence on the RSI and the Awesome Oscillator indicators signal a potential reversal and upward movement in ZIL price in the coming days.

More Cryptocurrencies News

MATIC sets for a rally as Polygon Foundation confirms the migration date

MATIC sets for a rally as Polygon Foundation confirms the migration date

Polygon (MATIC) price has broken above a falling wedge pattern, indicating a shift in market structure from bearish to bullish. The Polygon Foundation officially announced on Thursday that September 4 is the migration date for MATIC to POL.

More Polygon News

Top 10 crypto market movers as Bitcoin and Ethereum hold steady ahead of $1.8 billion options expiry

Top 10 crypto market movers as Bitcoin and Ethereum hold steady ahead of $1.8 billion options expiry

Bitcoin and Ethereum hold steady above $64,000 and $3,400 as $1.8 billion in options expire on Friday. WazirX hack of $230 million potentially linked to Lazarus Group ushers correction in Shiba Inu, among other assets. 

More Cryptocurrencies News

Bitcoin Weekly Forecast: Will BTC continue its bullish momentum?

Bitcoin Weekly Forecast: Will BTC continue its bullish momentum?

Bitcoin price increased by 5.5% this week until Friday after breaking above a descending trendline. Currently, it is trading slightly higher by 0.23% at $64,166. By Thursday of this week, U.S. spot Bitcoin ETFs observed cumulative positive inflows totaling $861.50 million.

More Bitcoin News

Bitcoin: Will BTC continue its bullish momentum?

Bitcoin: Will BTC continue its bullish momentum?

Bitcoin (BTC) price increased by 5.5% this week until Friday after breaking above a descending trendline. Currently, it is trading slightly higher by 0.23% at $64,166. By Thursday of this week, U.S. spot Bitcoin ETFs observed cumulative positive inflows totaling $861.50 million. On-chain data indicates oversold conditions for BTC, suggesting a possible market bottom.

Read full analysis

BTC

ETH

XRP