Despite Widening Fallout Of FTX, Bitcoin Price Has Managed To Sustain $16k

On the Thursday trading session, the trading price of most of the cryptocurrencies ended up facing a downtrend.

This happened because of a great financial void created by the FTX exchange. After FTX officials announced they had faced an unrecoverable loss, it became the largest disaster in 2022.

Right after FTX’s announcement, several companies started to reveal that they were exposed to FTX. Initially, multiple entities refused or did not admit they were exposed to FTX.

As the financial void kept growing bigger and regulators started from all over the world started launching investigations against the crypto firms, they admitted their exposure.

Even Genesis Global Capita, a major lending firm reported that it was exposed to FTX and was badly impacted by the FTX fallout. The firm ended up withdrawing funds from the customers on its platform.

There is a long list of companies and cryptocurrencies that have fallen victim to the FTX crash. The list has been growing larger with time and the contagion does not seem to be coming to an end.

Bitcoin is Trading Sideways

Throughout the market turmoil and FTX collapse, Bitcoin has continued trading sideways. The cryptocurrency has not let the FTX get to the best of its trading activity.

The latest report suggests that Bitcoin is currently trading at around $16,600. The situation has not changed much around Bitcoin in the past 24 hours.

Despite the aggressive selling activity of the bears, the bulls have proven they won’t let BTC fall below $16.6k.

BTC Price before FTX Crash

Before the FTX exchange crash took place, Bitcoin was heading for a stronger trading price. The trading price of the asset was moving higher and it was expected to hit $22k.

However, as things started to unravel involving Sam Bankman-Fried and FTX exchange, Bitcoin’s price started moving downward.

The trading price of BTC started to decline and soon, it was lower than $20k. Then BTC’s price fell below $19k and fell below $16k for the first time since 2020.

However, the price of Bitcoin recovered while the majority of the cryptocurrency is still trying to recover from the great loss.

Analysts Surprised at the Resilience

According to many market analysts, Bitcoin has proven to be more resilient than their expectations. They thought that Bitcoin would not be able to recover from the FTX trauma for a long time.

However, Bitcoin has recovered from the crash much faster than the rest. As per the analysts, it would take another major crash like FTX or Terra to bring Bitcoin to the same level as the altcoins.

The analysts expect that soon, the entire crypto market may start following the same trend. This would help form strong rallies in favor of Bitcoin and push its price all the way up to $20k.

By Brandon Craig
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