Bitcoin Price Prediction – BTC Falls Through $18,000, Here’s Where It’s Headed Next
During the European session, the cryptocurrency market continued to underperform, with the global crypto market cap down 10% from yesterday and DeFi coins down more than 11%.
Similarly, Bitcoin has dropped more than 10% and is now trading at $16,300. At $18,170, it broke a triple bottom pattern.
FTX and its subsidiary, Alameda Research, are in hot water. FTX tokens account for a sizable portion of Alameda's asset holdings. This information suggests that sister companies are more interconnected than previously thought. The latter balance sheets are the source of contention between the two companies.
Concerns about the FTX balance sheet triggered a dramatic shift lower in the market following the Binance LOI for FTX. According to reports, FTX was attempting to secure $6 billion in funding to close the gap on their balance sheet, which could jeopardize the deal.
Terra Luna's bank run and eventual collapse of LUNA Classic reverberated throughout the cryptocurrency market in May 2022, resulting in Bitcoin's first 7-week losing streak.
Investors are drawing parallels between the recent FTX bank run, the reported large budget gap, and what happened earlier this year with Terra Luna.
These concerns heighten investors' skepticism about the cryptocurrency market as a whole. As a result of investors' concerns about FTX's solvency, the value of cryptocurrencies is declining. As a result of the news, BTC/USD has dropped to new lows.
The Consumer Price Index data show that inflation in the United States increased by 0.6% in September. The CPI report, the most commonly used indicator of inflationary pressure in the United States, increased by 8.2% between September 2021 and September 2022, slightly higher than the 8.1% predicted by experts.
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