Bitcoin had been hovering above £17349.90 for the previous week, and its ability to maintain this level during the FOMC announcement had fueled speculation that the digital asset had finally bottomed out. However, recent events and bitcoin’s drop below £17349.90 have demonstrated that this is not the case. Furthermore, it indicates a potential market drop, which might pull the cryptocurrency to even lower lows.
Bitcoin is trading in the £16482.40 range, shattering the notion that the bottom had already been marked at £17349.90. Despite the digital asset deviating from many historical trends, it appears to eventually lose more than 80% of its all-time high value before the next Bull Run begins.
If this is the case, the market might reach lows below £14747.42. The question now is what caused such a price drop, which can be easily traced back to the continuing conflict between Binance and FTX.
The market is already suffering the consequences of Binance’s desire to dump more than £433.75 worth of FTT, which has already resulted in a more than 30% drop in the token’s price. However, as is sometimes the case in the crypto market, it is not limited to simply FTT. Other cryptocurrencies are feeling the effects, including bitcoin, which has lost almost £867.50 in value in the last 24 hours alone.
A bitcoin price recovery is inevitable, given that price declines are always followed by price increases. However, given that bitcoin has yet to reach its bottom, a significant recovery from this point is not expected. And until this happens, bitcoin is unlikely to breach above £19084.89.
Following the price hike last week, there were also big sell-offs in the market. Investors took advantage of this to achieve some fast short-term gains, but as a result, support at £17349.90 was lost.
Because of the high correlation, it boils down to the current macro atmosphere for bitcoin. It is unlikely that the digital asset will experience a significant value increase until the dust settles. The disruption caused by the macro environment and continued troubles with Binance and FTX indicates that bitcoin will continue to fall.