FTX Will Put Bitcoin Into Deep Bear Territory – Survey Says

The FTX bankruptcy will send bitcoin down to around $11,000, below the current price of $16,387 as of Sunday, according to a survey of crypto fund managers conducted by BDC Consulting and published last week. Only one respondent thinks bitcoin will go over $17.000 in the near term, and three think it will crash to $0 in value. The majority of investors, some 21%, said it would fall to $12,000.

FTX was a centralized cryptocurrency exchange. It sponsored the Miami Heat arena in Florida, counted on Larry David in 2021 TV commercials that aired during NFL games, and was the second-largest donor to the Democrats in the last midterm cycle.

The company filed for bankruptcy protection on November 11 after losing billions in crypto investors’ funds. The well-connected founder, Sam Bankman-Fried, was once heralded as his generation’s JP Morgan by Jim Cramer, star host on CNBC. Forbes had his net worth listed at $17.2 billion as of September 27. Now he finds himself owing investors just as many billions.

Gary Wang, an FTX co-founder and its chief technology officer; FTX engineering director Nishad Singh; and Caroline Ellison, who ran the FTX trading arm, Alameda Research, were all fired after Bankman-Fried resigned in disgrace. John J. Ray, who oversaw the bankruptcy and liquidation of the politically connected energy trader Enron, will oversee the companies’ bankruptcy.

Is My Crypto Safe?

The blow-up of FTX served as a warning to retail investors to make sure they have control of their bitcoin and other cryptocurrency in “cold storage”, such as the Ledger Nano or Trezor, among others.