The crypto winter – fueled by the FTX collapse – has pushed Bitcoin and Ethereum prices to extreme oversold. According to our latest crypto price oracles, Bitcoin price is trading around $16,800, down 14 per cent in the last 14 days.
On the other hand, Ethereum’s (ETH) price is trading around $1,221, down 20 percent in the past two weeks. With the top digital assets showing possible signs of dropping further, market strategists fear an induced crypto crash in the coming weeks.
While onchain data suggest that long-term holders may be accumulating at current levels, the possibility of further decline remains at play. Moreover, Bitcoin and Ethereum prices have maintained a falling trend since last year’s November.
As investigations surrounding the FTX saga continue, top institutional investors are reportedly selling at double-digit losses as they flee the volatility and unpredictable markets.
The insolvency of FTX and Alameda has exposed other crypto institutions, with Genesis Trading reportedly in hot soup.
Notably, Genesis Trading, a crypto lending platform for several central exchanges, including Gemini, has suspended withdrawals of the held digital assets. The firm announced a $175 million FTX exposure, which has left its balance sheet unbalanced.
On Friday, Grayscale’s Bitcoin Trust (GBTC) was trading at $9,562 per unit, 43 percent lower than the underlying value. Similarly, Grayscale’s Ethereum Trust (ETHE) was trading at $718 per unit on Friday, approximately 41 percent lower than the asset’s underlying value.
With the company holding 633.7k Bitcoins worth approximately $10.57 billion and 3.05 million ETH worth around $3.68 billion, increasing selling pressure may indicate more pain ahead in the industry.
Nonetheless, El Salvador president has announced that the country will purchase 1 Bitcoin Per day onwards. Hereby indicating that the country is bullish on the Bitcoin market in the long run.
As such, it is not clear if the worst-case scenario is yet to unfold in the crypto market.
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