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After briefly staying above the $21k support, the Bitcoin price changed course and is now headed in a bearish direction, with intraday charts showing the world’s leading crypto is trending down and getting close to $20k. At the time of writing, Bitcoin is trading at $20,648, which is down by 1.72% in the last 24 hours.
What is the reason behind this sudden shift, and where is Bitcoin heading next?
CZ Binance vs. SBF: Is FTT to blame for the current Bitcoin Price?
The entire Twittersphere was thrown into disarray when it found that Binance would be liquidating its holding of 22 billion FTT tokens. It was in response to the leaked document that gave rise to FTT insolvency rumors after the FTX head decided to separate the FTX exchange and Alameda Research – a crypto hedge fund company with a large portion of equity depending on the FTT token.
Not willing to antagonize Sam Bankman-Fried, the Binance Chief clarified that this liquidation is a post-risk management tactic they are employing after learning from the LUNA crash. He further added that the company is not against anyone. However, he did add that Binance doesn’t support those who lobbies against other industry players behind their backs.
Liquidating our FTT is just post-exit risk management, learning from LUNA. We gave support before, but we won't pretend to make love after divorce. We are not against anyone. But we won't support people who lobby against other industry players behind their backs. Onwards.
— CZ 🔶 BNB (@cz_binance) November 6, 2022
This statement is a direct jab against Sam Bankman-Fried, who is in talks with politicians to introduce more regulations in the crypto market. Last month, Bankman-fried presented a blueprint in which he proposed to the regulators a litany of standards that, according to crypto watchers, could pose a major threat to DeFi (Decentralized Finance). Interestingly, the same blueprint didn’t mention one word about introducing more oversight on centralized cryptocurrency exchanges.
Also, last month, the 30-year-old FTX head came under fire for stating he could spend “north of $100 million” in the next presidential elections if he wanted. Sam Bankman-Fried’s political affiliations have been a matter of long debates among the larger crypto community, with many saying that he might not be the “good samaritan of crypto” that most make him out to be.
This feud, coupled with other tweets that compared Alameda research to Celsius, resulted in the crypto prices of the top 10 cryptocurrencies crashing, with Bitcoin bulls failing to maintain $21k support and Ethereum dropping below the 1.6k level.
Bitcoin Price Prediction: Technical Analysis of Intraday Trading Charts
Bitcoin was doing pretty well last week as the better-than-expected US jobs report and FOMC meet-up let bulls take brief control of the market and push the Bitcoin price above $21k. The price sustained above this level long enough to give the crypto community hope that Bitcoin might have found new support.
But the world’s leading crypto lost all the momentum after the FTT insolvency rumors broke out, leading the bears to take charge and organize a BTC sell-off. As a result, the BTC price chart painted multiple bearish engulfing patterns throughout the day.
However, making the CZ-Bankman feud the sole reason behind the Bitcoin bearish sentiments would be wrong.
The US midterm elections have started, which is significant since it could decide the future of DeFi and NFT platforms. These elections will see two bills take center stage: the Stablecoin legislation and the Senate Agriculture Committee’s Digital Commodities Consumer Protection Act (DCCPA). It signals that the emergence of Bitcoin’s buyer’s market might be the result of investors derisking to prevent losses to come with Bitcoin’s price drops.
Save Yourself from the Market’s Volatility with These Crypto Investments
Bitcoin’s downturn has dropped the price of top-10 cryptocurrencies, driving investors to look for good tokens that are yet to be affected by the market sentiments. That brings us to the presale cryptos that have shown great use cases and present substantial growth potential before even being listed on any cryptocurrency exchange.
The first is Dash 2 Trade, a crypto analytics tool featuring facilities useful to ordinary traders to make informed crypto investment decisions.
The rest are Calvaria and IMPT. Calvaria is a new P2E game that aims to give stiff competition to Gods Unchained and Splinterlands with its inclusive gameplay that will likely also appeal to non-crypto gamers.
And for environmentally-conscious investors, IMPT presents a unique carbon credits trading platform that ordinary investors can be a part of.
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