Analysts estimate that Bitcoin could still fall further to stage any recovery. Although the collapse of almost 75% of the cryptocurrency from its 2021 high has already sent shockwaves through markets, it would need to drop below $13,000 to begin to match the magnitude of previous pullbacks, according to data from Bloomberg.
The big question is how long it might take to reach this ground. The current bearish streak is set to last longer than previous cases, but it is still seven weeks away from the crash that ended in 2015.
“Bitcoin has fallen more than 25% since the start of trading on Monday before findingsupport around $15,500 and recover slightly“, explained Craig Erlam, senior analyst at Oanda.
Erlam adds that the impact on the sector has been serious and explains that the fear is not just that other ‘tokens’ could be exposed, but whether similar vulnerabilities exist on other platforms.
“As Warren Buffett says, only when the tide goes out do you know who has been swimming naked. Well, it may be going down and the operators fear what they may discover,” he says.
Along these same lines, Ipek Ozkardeskaya, Senior Analyst at Swissquote Bank, acknowledged that there are now fears that FTX is just the tip of the iceberg and wonders how many cryptocurrency platforms may have similar insolvency issues that are just waiting to be revealed.
Source: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
