The collapse of FTX was as devastating for the altcoin market as it was for FTT. Bitcoin (BTC) fell as low as $15,682.69 amid the crisis. New analysis suggests that further declines could occur for the two altcoins linked to FTX.
Watch out for these two altcoin projects after the FTX crash
In his latest analysis, crypto analyst Emma Newbery said that now is a good time to buy Bitcoin as its price is hovering at two-year lows. According to his article, after FTX, other crypto exchanges are also at risk. The analyst also warns that current events will have a gradual impact on the market. Therefore, he came up with the idea to examine the projects in which Alameda invested and in which it was clearly directed. Based on this, the company warned that the two altcoins associated with it could plunge to new lows:
When a crypto institution fails, it has a ripple effect on other platforms and projects. In this case, pay attention to the projects in which Alameda has invested heavily. These include Solana (SOL) and 1inch Network (1INCH).
Meanwhile, similar views were voiced at anonymous analyst Rekt Capital. He said that Bitcoin generally tends to “bottom out about a year after the previous Bull Market peak.” He also noted that as of now, one year has passed since the November 2021 high:
If there was ever a time when you needed to pay attention to the market to position yourself for maximum ROI. It’s done now.
"The FTX situation will extend the #BTC Bear Market substantially"
This is Bear Market psychology, which occurs near Bear Market bottoms
Previous implosions of exchanges also occurred at Bear Market bottoms but didn't extend the Bear Markets themselves$BTC #Crypto #Bitcoin https://t.co/0DcwnNgX26
— Rekt Capital (@rektcapital) November 16, 2022
In a follow-up tweet, however, the analyst adds that BTC has pulled back 78% so far and there is still “35% more” fall room to reach the historical average bear market correction level.
Institutional investors take positions against Bitcoin
The weekly fund flow report by CoinShares shows the highest inflows into crypto investment products since the beginning of March, when $42 million was invested. The firm wrote that the inflows began within the week after crypto prices plunged due to FTX’s liquidity crisis. The CoinShares report states:
It shows that traders see this price weakness as an opportunity and distinguish between trusted third parties and an inherently unsafe system.
According to the report, the flow of investments in Bitcoin (BTC) related products reached $18.8 million last week. Meanwhile, Ethereum products saw $2.5 million inflows. $12.6 million flowed into shorts that took a position against BTC. This suggests that some institutional players are taking a position against Bitcoin against the cryptocurrency. cryptocoin.comYou can access the CoinShares reports of the past weeks, which we quoted as, here.
