Bitcoin could drop to $10,000, good thing FTX is falling right now – BLOX

Bitcoin could drop to $10,000, good thing FTX is falling right now - BLOX

Bobby Lee says that it is good that parties that have bad intentions with crypto are being removed from the market right now. But as a result, Lee expects the Bitcoin price could drop to $10,000.

Bitcoin can drop to $10,000

Lee is one of the founders of Hong Kong crypto exchange BTCC, in an interview with Bloomberg Markets Asia he talks about the fall of FTX and what that could mean for the Bitcoin price.

Bitcoin has fallen below $16,000. Earlier I said it will probably drop to 15,000. Given the size of the FTX, the bottom could even be at $13,000 or even $10,000. It’s going to be a very, very drastic crash.’

Much depends on how other crypto companies manage to survive, or fall over.

“As we know in the market, for the past week we have been looking at the problems of Genesis, one of the major brokers in the crypto market. So if something bad happens to it or if something bad happens to the USDT stablecoin, there could be much worse prices in a few weeks.”

Regulations to stop bad parties

As a young industry, Lee says there are still many bottlenecks to resolve, including a lack of regulation and numerous bad parties. He says it’s a good thing the FTX collapse is happening now rather than a few years from now.

“The crypto market is cyclical, just like any other market. And these bad actors – and I’m talking about FTX and these exchanges that are not doing well because of a lack of regulation and regulatory arbitrage – these bad actors need to be flushed out. This is again, this is a very, very young market.”

On to the second decade

The crypto industry is not that old yet, there are only a handful of companies that have been around for more than 10 years.

Crypto exchanges have been around for about 10 years. And for a global asset class, 10 years is just the blink of an eye. So we need more regulation worldwide and it will take decades for this market to mature.’

The first decade is behind us, the second decade of crypto has just begun.

“We have just completed our first decade. We are now in our second decade. And in a way, it’s kind of a good thing that the FTX thing happened now instead of a few years later. You could say it’s already too late. It’s already in billions of dollars in losses and things like that. But if the problems hadn’t come up, if it had gone on for a few more years, it could have been worse in four, five, ten years.’

“So we just have to survive this early stage of crypto amateurs.”

What does bankruptcy of FTX mean?

There have been a number of serious allegations of malpractice filed against FTX. One of the allegations is that it used customer and company funds to financially support Alameda Research.

FTX, along with 130 sister and subsidiary companies, has filed for Chapter 11 bankruptcy in the United States. Numerous other major players in the crypto industry have also filed for bankruptcy, the latest of which is BlockFi.

Lawyers expect it could take many years for 5 million FTX users to get their money back. These coins are entrusted to an apparently regulated, ‘good’ custodian.

This does not only apply to FTX, but to all major bankruptcies that undergo Chapter 11 proceedings. You can see this as a kind of forced reorganization in which users see something of their investment back on average between 3 and 5 years.

The many bankruptcies and the flurry of incompetence among these major international players has caused enormous reputational damage to the crypto industry. Bitcoin has to work very hard not to fall further to the target $ 10,000, let alone to start an increase.