The cryptocurrency market has a ticking time bomb that could potentially cause something big to happen within the next 24 hours. While the market shouldn’t be shorted right away, there is potential for downside, with the FTX contagion spreading and lawyers refusing to work with Sam Bankman Freed incessantly. There is a lot of unrest with Genesis’ and DCG’s financial situation, with a rumored $1.1 billion owed by DCG to Genesis. Despite this, Pantera Capital has bought Bitcoin for $137 million, predicting a 2.3x increase by the next Bitcoin having in 2024 and putting money behind that bet.
The Ticking Time Bomb in Cryptocurrency
The cryptocurrency market is facing a potential crisis and we only have about 24 hours before something big could happen. While we are not advocating shorting everything right now, it is important to be aware of the potential downside. In fact, we will discuss our own leverage bet later in this article.
FTX Contagion Continues to Spread
The FTX collapse continues to make headlines with reports of employee scandals, budget approvals through emojis, and co-mingling of work and home. Even CEO Sam Bankman-Freed took $300 million when FTX raised $420 million, causing the situation to worsen. Lawyers even stopped working with him, blaming incessant and disruptive tweeting. FTX also had millions of dollars stolen from them. Currently, they are dumping Ethereum on the market which is causing a significant impact on Ethereum prices.
Cryptocurrency Market Outlook
Despite the potential crisis that the market may face because of the FTX contagion, investors should not be discouraged about the potential of cryptocurrencies. Mount Cox had accounted for over 70% of Bitcoin transactions at its peak compared to FTX being right around 10%. The recent Pantera Capital Fund investment in Bitcoin worth $137 million shows that there are still investors who hold trust in the market.
Protecting Your Crypto Assets
As with any investment, it is important to protect your assets by taking them off exchanges and self-custodying them. This is the safest way to ensure your funds remain secure. However, if you do wish to trade through exchanges, use the link below to sign up and receive sign-up bonuses:
Above all, be cautious and make informed decisions to protect your investments during this tumultuous time in the cryptocurrency market.