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BTC Under Pressure as Industry Cracks

Hi Traders, Investors and Speculators 📈📉

Ev here. Been trading crypto since 2017 and later got into stocks. I have 3 board exams on financial markets and studied economics from a top tier university for a year. Daytime job - Math Teacher. 👩🏫

Today, a little bit more of a fundamental analysis than a technical analysis (apart from the line break candlestick analysis, which speaks for itself).

Millions of retail investors and speculators have lost their savings in the resounding bankruptcies of crypto firms. Bitcoin faces heavy bearish pressure from sellers as the cryptocurrency industry continues to unravel at the seams. Even the SEC case against Ripple is back in the headlines again. Still, BTC continues to hold above the two-year support zone at $15,500 which it touch during the recent panic selling amid the collapse of crypto exchange FTX.

In total, there have been 7 major bankruptcies since May. In all of them, customers and investors are unsure whether they'll get their money back. It all started May 9 when sister cryptocurrencies Luna and UST, or TerraUSD suddenly crashed, wiping out at least $55 billion. Luna, which was hyped by crypto evangelists, lost all current and future potential value. The rout caused a credit crunch that ended up taking out the hedge fund Three Arrows Capital, or 3AC, to which many crypto firms had entrusted their clients' money to invest. The impact on the industry was huge: Eminent crypto lenders like Celsius Network and Voyager had to file for bankruptcy due to their exposure to Luna and UST through 3AC. BlockFi, which was also affected, had to be bailed out by the FTX cryptocurrency exchange and its founder, Sam Bankman-Fried. Just over three months later, FTX and Alameda Research filed for bankruptcy. BlockFi has done the same, and there's no doubt that more crypto firms will shortly follow, since is it a tightly interconnected space.

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Nonetheless, it's important to note that the underlying technology of cryptocurrencies, blockchain, can still be of benefit outside the cryptocurrency market. If anything, blockchain could come out of the crypto winter even stronger. In an uncertain market, it's good to have some flexibility. That means having the ability to change positions in the market when conditions deem it necessary and not hold on to losing positions unless you're accumulating and playing long term.

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