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Crypto Tuesday: Capitulation Seems Inevitable


  • Token plunged ~42% overnight
  • Binance withdrew their FTT holdings sending the market in a panic
  • FTX has halted Ethereum withdrawals – a sign that the exchange could be going bust

Bitcoin / BTC

  • I see Bitcoin reaching/testing $14k levels if the following occurs:
    • FTX goes bankrupt
      • There will be enough panic in the markets if the Third Largest Crypto Exchange (FTX) begins selling off assets to stay afloat
    • Equities react unfavorably to midterm election results
    • CPI print on Thursday shows inflation rising
  • There’s waning price strength sub-$20k levels; next level of support is identified at $14k based on historical price movements

Binance Coin / $BNB

  • Seems to be largely unaffected – the market appears to be hedging its bets on Binance

Ethereum / $ETH

  • FTX limiting Eth withdrawals could set off more panic in the markets
  • We could see Eth at $600 range if traders sell in a panic at the first opportunity they get

Expect high volatility in crypto markets over the next couple of months

The FTX vs. Binance feud could get ugly

FTX owner Sam Bankman-Fried was the second-largest individual donor to Joe Biden in the 2020 election cycle, personally donating $5.2 million

He has many connections in Washington, DC

An insolvency event like this could trigger regulations on crypto exchanges that can have lasting impacts on the market