Crypto

More Blood in Satoshi Street – Bitcoin Price May Hit $10K For These Reasons

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FTX’s problems continued to have an adverse effect on the cryptocurrency markets on Tuesday, which once again paved a way for the bears. Bitcoin, the most valuable cryptocurrency by market capitalization, was recently trading at around $16,200, a more than 10% decrease to its lowest point in two years.

Following the recent collapse of Sam Bankman Fried’s exchange FTX, the price of bitcoin, along with Ethereum, Ripple, and other altcoins, has experienced a significant sell-off over the last 24 to 48 hours.

According to commodities analyst Mike McGlone of Bloomberg Intelligence, the recent fall of FTX may not be the worst scenario for the cryptocurrency markets this year. The collapse of Bankman- Fried’s exchange is probably what started this. The tweet says that as a result, Bitcoin may once again hit the $10,000 mark

McGlone said that the current slide in the price of Bitcoin below the $18,000 mark and the price declines of altcoins may lead to the capitulation in the majority of markets, which have been under pressure since the year’s beginning. According to a study by McGlone, the massive reversion of risk assets has become evident today as Bitcoin fell to the $17,600 region.

What Happened?

Bitcoin’s first seven-week losing streak started in May 2022 as a result of the market’s response to news of the Terra Luna bank run and the consequent collapse of LUNA Classic. Analysts are making comparisons between the latest FTX bank run and earlier this year’s Terra Luna occurrences in light of the reported significant budget deficit.

After the Binance LOI for FTX initially drove up prices, concerns regarding FTX’s balance sheet have caused the market to crash severely. In light of FTX’s efforts to raise $6 billion to fill a hole in its balance sheet, the purchase may have been in jeopardy, according to reports.

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