FX.co ★ Binance gives up FTX acquisition deal

Bitcoin briefly hit $15,555, but rebounded by almost $2,000 afterwards. However, this does not mean that BTC would end its bearish trend and move upwards. Earlier forecasts of Bitcoin moving down came true. Now the only way for BTC is down towards $12,426.

Experts point at the possible bankruptcy of the FTX crypto exchange as of the main reasons for the new collapse of the cryptocurrency. It is not the first time a major crypto company had severe issues in 2022, which is not surprising given the 70% drop in Bitcoin. Various estimates say even cryptocurrency mining is unprofitable now – the costs are higher than BTC's market value. Most Bitcoin holder already were at a loss when BTC cost $20,000, as most owners bought BTC at a higher price than before the slump. Now, Bitcoin has fallen to $17,000, meaning there are even more wallets in unprofitable positions.

Binance tried to acquire FTX and save the beleaguered company. However, FTX had a $6 billion shortfall and that there were serious discrepancies between the company's assets and liabilities. This situation forced Binance CEO Changpeng Zhao to walk out of the planned deal. Now, FTX is likely to collapse, which could lead to a massive sell-off in the market, triggering Margin Calls. The fundamental picture has increasingly deteriorated over the past several days. Bitcoin successfully resisted Fed interest rate hikes and an increasingly hawkish rhetoric of Jerome Powell, but it could not stand against market factors.

The leading cryptocurrency is likely to continue its nosedive. Over the past weeks, numerous analysts, investors, and billionaires forecasted a Bitcoin bull run in the near future. In reality, Bitcoin is sliding down, or moving sideways at best. Traders should take constant claims of an upcoming BTC uptrend with a grain of salt. Like all assets in the market, Bitcoin can move in both directions from time to time.

In the 24 hour time frame, BTC managed to successfully break below $18,500. From there, it could continue to decline towards $12,426. As forecasted earlier, Bitcoin did not end the bearish trend by rising above the trend line, as it was still moving sideways. Now, the cryptocurrency is below the trend channel, and it could continue to drop even lower.