Crypto carnage as Bankman-Fried empire collapses

The crypto market is deep in the red following the run on Sam Bankman-Fried’s FTX and Alameda empire.

Much of the gains made by crypto over the last couple of weeks have been wiped off in the last three days as Sam Bankman-Fried’s FTX crypto exchange and his Alameda Research crypto trading firm have begun what could be a spectacular collapse.

Should this potential collapse play out then the crypto market will once again have to weather the fall out of a big player going to the wall and all the knock-on downside this is likely to bring.

BTC

Bitcoin dipped as much as 6% since yesterday’s close, and has since rallied back to be only 4% down as at mid-morning BST. This puts it at a price of $19,770, still under the important psychological level of $20,000.

From a technical trading point of view, shorter term RSIs are resetting to the bottom and so there is perhaps the possibility of a movement back to the upside over the next day or so, but with the $FTT token on extremely shaky ground more downside should not be off the cards.

ETH

Ethereum experienced an 8.7% crash today which took the price all the way back to the $1,400 support. It is now trying to hold above the downwards trendline that began back in November of last year. If it maintains the trendline then this would be at a price of around $1,500.

FTT

$FTT, the token for the FTX exchange, fell below the last line in the sand at $21 this morning. The resulting plummet took it down to $15, and now, 3 or 4 hours later, the price has recovered to around $18.

A $140 million buy wall on FTX spot is set at $14. Many may think that this is a good place to set a long just above. However, on the other side of the coin, the wall could be a place where a big seller uses it as a place to unload while the price is being held up there.

SOL and RNDR

Other tokens are also in danger of seeing some potentially heavy liquidations given that they are held by Alameda Research. $SOL and $RNDR are two examples. $SOL reached as low as $25 this morning, a fall of 15.5%. The token is currently trading at just over $28.

$RNDR, fresh on the heels of a price spurt to the upside on the news of the Apple iphone integration, has fallen as far as 42%, partly on the ‘sell the news’ event, and partly due to Alameda research holding $2 million in $RNDR tokens.

The next few days are likely to be very interesting for the crypto market. Midterm elections today, and the new inflation figures coming out on Thursday will potentially add a lot of spice to the mix.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.