Is the sellout really over? 2023 could change everything

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By Marco Oehrl

Investing.com – Cryptocurrencies such as Bitcoin and Ethereum have still failed to recover from the FTX debacle. Trading continues near cycle lows amid doomsday scenarios that see BTC/USD drop below $10,000 next year.

However, former BitMEX CEO Arthur Hayes is convinced that the existing cycle lows represent a bottom. He argues that the sell-off has already peaked, as all the crypto companies that were threatened by the specter of bankruptcy have now gone bankrupt.

As part of the accompanying liquidity crunch, these companies were forced to sell off their most liquid assets, which of course included Bitcoin. Meanwhile, these companies are at a stage where they can no longer sell BTC before disappearing from the market for good:

“When you look at the balance sheet of one of these heroes, there’s no bitcoin on it because what are they doing, they sold the bitcoin when they were bankrupt, they sold Bitcoin during the wave before going bankrupt.

I think the US Treasury market will become dysfunctional at some point in 2023 due to Fed tightening monetary policies… At this point I expect the Fed to activate the print bank and then blow shaka -laka – Bitcoin and all other risky assets will climb higher.”

Hayes is not alone in his opinion. Investor Cathie Wood believes the demise of FTX will help the DeFi sector experience accelerated growth. Indeed, in a transparent and decentralized commercial environment, suspicious transactions are impossible:

“I think what we learned from FTX is how much more important fully transparent decentralized networks will be for financial services in the future… FTX, Celsius, 3AC were all closed networks. Opaque systems .You couldn’t see what was going on…”

From his point of view, this is why Sam Bankman-Fried preferred to leave Bitcoin aside. Too transparent, too decentralized, and therefore impossible to control.

The story continues

Bitcoin Technical Price Markers

Bitcoin is currently losing -1.60% at a BTC/USD rate of $16,908, while the weekly loss is -2.33%.

The cryptocurrency managed to hold above the 23.6% Fibo retracement support of $16,986 for three consecutive days. Currently, however, trading is taking place below and the December 7th low at $16,715 can be tested.

A daily close below this level would shift focus to the November 28 low, which sits at $16,013. Below that, further losses towards the cycle low of $15,504 would be possible.

Only if it manages to sustainably hold above the 23.6% Fibo retracements does the likelihood of a rally towards the 38.2% Fibo retracement of $17,841 increase. This resistance is reinforced by the psychological mark of $18,000 and the 55-day MA, which stands at $18,023.

(Translated from German)

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