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FTT Surges 50% On FTX Creditors’ Claims Settlement And Billions In Compensation: How High Can It Rise?

In a significant development, defunct cryptocurrency exchange FTX has unveiled a reorganization plan to reimburse almost all of its customers. 

The announcement has sparked a substantial surge in the exchange’s native token, FTT, which recorded an uptrend of 52% over the past seven days, reaching a monthly high of $2.29 during Wednesday’s early trading session.

FTX Unveils Debt Repayment Strategy

FTX estimates its outstanding debts to creditors to be approximately $11.2 billion, as revealed in the reorganization plan published late Tuesday. The company has disclosed that it possesses between $14.5 billion and $16.3 billion, which it intends to distribute among the creditors.

Under the proposed plan, customers with $50,000 or less claims will receive approximately 118% of the allowed claim amount. This compensation is slated to be disbursed to around 98% of the creditors, relieving FTX customers who have experienced locked funds since the exchange filed for bankruptcy protection in November 2022. 

FTX stated in a press release on Wednesday that the company could not utilize the appreciation of the missing tokens during the Chapter 11 cases. Instead, FTX had to identify other recoverable sources of value to repay creditors. 

Following the departure of founder Sam Bankman-Fried, FTX appointed John Ray III as CEO. Ray, speaking on the matter in November 2022, expressed his astonishment at the “complete failure of corporate controls and such a complete absence of trustworthy financial information” witnessed at FTX. Ray further stated in the press release on Wednesday: 

We are pleased to be in a position to propose a Chapter 11 plan that contemplates the return of 100% of bankruptcy claim amounts plus interest for non-governmental creditors. 

FTX’s founder, Sam Bankman-Fried, faced legal consequences, being convicted on seven criminal counts, including charges related to embezzling billions of dollars from FTX’s customers. Bankman-Fried was subsequently sentenced to 25 years in prison.

FTT Bulls Eyeing $2.55 For Potential Breakout Continuation

As of the latest update, the price of FTT has corrected to $2.050 after reaching its monthly high. This breakout occurred after consolidation between the $1.17 and $1.48 levels.

At the current price level, FTT faces a significant resistance at $2.169, which has led to the ongoing correction. If FTT sustains its bullish momentum, the next resistance level to watch is $2.55 in the token’s daily chart. 

A successful breakthrough of this level could potentially lead to a retest of the $3 mark, which has not been revisited since January.

On the other hand, if the price experiences a further correction, FTT bulls should closely monitor the $1.95 and $1.765 levels, as they serve as crucial support levels. It is essential to prevent a loss of the gains achieved over the past month, which amounts to an 18% increase during this period.

FTX

Featured image from Shutterstock, chart from TradingView.com

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FTX Estate Offloads $1.9 Billion Worth Of Locked Solana (SOL) Tokens In Sale

In a significant development, FTX bankruptcy trustees have reportedly sold about two-thirds of a $2.6 billion stash of Solana (SOL) at a “deeply discounted price.” 

Industry figures such as Galaxy Trading and Pantera Capital were among the investors involved in the deal, according to people familiar with the matter, as reported by Bloomberg.

SOL Tokens’ Four-Year Journey

Per the report, the FTX estate was able to sell between 25 million and 30 million locked-up Solana coins at $64 each, generating up to $1.9 billion in proceeds for the estate. 

Under Mike Novogratz’s Galaxy Digital, Galaxy Trading managed to raise approximately $620 million for a fund established to purchase SOL from the FTX estate. According to the report, investors in the vehicle will be subject to a 1% management fee, and the investment will offer a yield through staking.

It is worth noting that the 41 million Solana tokens sold by the FTX estate are locked according to a pre-agreed vesting period, preventing them from being available for trading on the market. 

According to Bloomberg, these tokens will gradually become available for sale over the course of four years, which could significantly impact SOL’s price action. However, as the tokens remain locked, SOL’s 739% year-to-date (YTD) uptrend remains intact, and the possibility for further gains remains in the cards.

Solana Sale Garners Interest From Prominent Figures

FTX co-founder Sam Bankman-Fried, convicted of fraud and sentenced to 25 years in prison, was a major supporter of SOL. 

As previously reported, Bankman-Fried has actively engaged with guards at the Metropolitan Detention Center, where he is currently incarcerated. He offers investment advice and recommends SOL as a potential opportunity, demonstrating his bullish sentiment on the protocol. 

The token, which operates on the Solana blockchain, constituted a significant portion of the digital assets stranded on the collapsed exchange, creating shockwaves throughout the crypto markets. 

In addition to Galaxy Digital, Bloomberg notes that selling SOL tokens has attracted the attention of Pantera Capital. This $5.2 billion asset manager has reportedly raised capital for a special fund to acquire up to $250 million of SOL from the FTX estate. 

Vancouver-based Neptune Digital Assets Corp. also announced the purchase of 26,964 SOL tokens for $1.7 million on March 27. However, FTX creditors are concerned they will be under-compensated in the SOL sale process. 

Creditors Dispute FTX Bankruptcy Ruling

In January, the judge overseeing the bankruptcy case ruled that the amount of each claim should be based on what the customer or creditor was owed on the day FTX filed for bankruptcy. At that time, SOL was trading at about $16, well below its current market price.

As the price of SOL rallied in recent months, this discrepancy became a point of contention for some creditors. One creditor, Sunil Kavuri, expressed during Bankman-Fried’s final sentencing hearing that the SOL coins are “our property.” 

Another creditor, whose name was redacted in court documents, stated in a written statement that the FTX estate is “giving away money for free to hedge funds.” In a recent interview, Bankman-Fried claimed the following regarding clients’ growing concerns about underpayment: 

I’ve heard and seen the despair, frustration, and sense of betrayal from thousands of customers; they deserve to be paid in full, at current price. That could and should have happened in November 2022, and it could and should happen today. It’s excruciating to see them waiting, day after day. 

Solana

Currently, the price of SOL stands at $175, reflecting a decrease of up to 6.7% within the last 24 hours and over 7% over the past week.

Featured image from Shutterstock, chart from TradingView.com 

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FTX Founder Sam Bankman-Fried Breaks Silence, Announces Appeal For 25-Year Conviction

In a recent interview with ABC News, Sam Bankman-Fried (SBF), the co-founder and former CEO of the now-bankrupt cryptocurrency exchange FTX, spoke about his remorse and plans for an appeal following his recent 25-year prison sentence for fraud.

FTX Co-Founder Admits Errors

Bankman-Fried, currently held at the Metropolitan Detention Center in Brooklyn, shared his reflections on the unfolding events. He admitted to making several “bad decisions” in 2022 that led to FTX’s insolvency.

Although he claimed he had never considered his actions illegal, Bankman-Fried acknowledged falling short of the “high ethical standard” he set for himself.

During the sentencing, US District Judge Lewis Kaplan accused Bankman-Fried of perjury and evasiveness during his testimony, criticizing his lack of remorse for the crimes committed. In response, Bankman-Fried affirmed his remorse and expressed empathy for the thousands of customers who suffered financial losses. SBF claimed the following:

I’m haunted, every day, by what was lost. I never intended to hurt anyone or take anyone’s money. But I was the CEO of FTX, I was responsible for what happened to the company, and when you’re responsible it doesn’t matter why it goes bad. I’d give anything to be able to help repair even part of the damage. I’m doing what I can from prison, but it’s deeply frustrating not to be able to do more

Bankman-Fried also acknowledged the impact on his co-workers, who reportedly dedicated their lives to FTX, and the charities he supported, whose funding was affected by the company’s collapse. 

The disgraced crypto mogul expressed deep regret for “throwing away” what they had worked hard for and expressed a desire to repair at least part of the damage caused. Despite his efforts from prison, Bankman-Fried admitted to feeling frustrated by the limitations on what he could do to rectify the situation.

In his statement to the court, Bankman-Fried contended that if he or another FTX employee had remained CEO, customers would have been paid back by now. He attributed the delay in compensation to the company’s decision not to restart the FTX exchange, which he believed could have created long-term value.

Sam Bankman-Fried Claims ‘Unfair’ Trial, Plans Appeal

During the interview, Bankman-Fried also raised concerns about the fairness of his trial, specifically calling out Sullivan & Cromwell, the law firm representing FTX’s new owners. 

SBF accused them of colluding with the prosecution and preventing him from accessing key FTX documents shared with the prosecution. Bankman-Fried claimed this had a “detrimental effect” on the entire trial, including media coverage and the defense’s ability to present evidence in his favor.

Responding to Bankman-Fried’s claims, a spokesperson for Sullivan & Cromwell referred to Judge Kaplan’s sentencing remarks, highlighting Bankman-Fried’s perjury on the witness stand and his strategy of blaming lawyers and the bankruptcy process instead of accepting responsibility for his crimes.

Looking ahead, Bankman-Fried revealed that his defense team plans to appeal the conviction later this year, primarily based on certain trial testimony that he felt greatly misrepresented the actual events. He also mentioned the importance of introducing “crucial evidence” and presenting key witnesses, which his defense was allegedly not allowed to do during the trial.

As Bankman-Fried begins his prison term, he acknowledges the gravity of the situation, having lost everything. While expressing a desire to make a positive difference in the world, he recognizes the limitations of his current circumstances and remains committed to seeking justice through appeals.

Sam Bankman-Fried

Featured image from BBC News, chart from TradingView.com

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Pantera Capital Plans $250M Solana (SOL) Buy, Analyst Predicts Record Rally Toward $1000

Pantera Capital, a prominent crypto-focused asset manager with assets totaling $5.2 billion, has launched a fundraising campaign to purchase discounted Solana (SOL) tokens from the bankrupt estate of crypto exchange FTX. 

According to Bloomberg, the initiative, known as the Pantera Solana Fund, offers investors the opportunity to purchase up to $250 million worth of SOL tokens at a significant discount to the FTX estate.

Solana Token Acquisition Plan

Pantera Capital’s marketing materials, shared with prospective investors in February and reviewed by Bloomberg, outline the opportunity to purchase SOL tokens at a price 39% below the 30-day average or at a fixed price of $59.95. 

However, Bloomberg notes that investors participating in this opportunity must agree to a vesting period of up to four years. This approach reportedly allows FTX liquidators, led by John J. Ray III, to offload SOL tokens gradually, freeing up funds for creditors without exerting immediate downward pressure on the token’s price.

According to Pantera’s pitch document, the FTX estate currently holds approximately 41.1 million SOL tokens, valued at $5.4 billion as of the close of Wednesday’s trading session. This constitutes roughly 10% of the total supply of SOL tokens. 

According to its investor pitch, Pantera aimed to close the fund by the end of February. Although the amount raised by the deadline remains undisclosed, sources familiar with the matter confirmed to Bloomberg that Pantera has secured some funds.

Investors interested in participating in the Pantera Solana Fund must commit a minimum of $25 million. Pantera Capital plans to charge a management fee of 0.75% and a performance cut of 10%.

Apart from its substantial SOL token holdings, FTX and its sister firm, Alameda Research, have invested significantly in startups within Solana’s broader ecosystem. 

According to Bloomberg, FTX’s venture arm, Solana Ventures, and Lightspeed Venture Partners jointly announced a $100 million blockchain gaming fund in November 2021.

Ultimately, the estate’s intention to sell these tokens presents an opportunity to raise funds to repay creditors, considering the notable surge of SOL’s price in the past year. SOL has experienced a staggering 650% increase, trading nearly four times its price when FTX faced its crisis in November 2022.

Crypto Analyst Forecasts SOL To Shatter Previous ATH

SOL, the fifth-largest cryptocurrency by market capitalization, has continued its remarkable upward trajectory and is currently trading at $147.

The token’s price has increased significantly by 14% in the past 24 hours alone, and over the course of 30 days, it has soared by an impressive 56%. 

Despite this uptrend, SOL remains 43% below its previous all-time high (ATH) of $259, achieved in November 2021. However, crypto analyst Altcoin Sherpa believes that SOL will break its previous ATH during this market cycle, with the only uncertainty being the size of the break.

Altcoin Sherpa suggests that reaching $500 is highly probable, and an even more astonishing milestone like $1000 is not entirely out of the question. The analyst further emphasizes its confidence in SOL’s potential, stating that it remains one of their more substantial investments. Altcoin Sherpa also highlights the next significant level to watch for SOL, which is $170.

Solana

Featured image from Shutterstock, chart from TradingView.com 

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Alameda Research’s Worldcoin Investment Hits All-Time High, Exceeding $50M As WLD Price Climbs

Worldcoin, the digital identity token ERC-20 project on the Ethereum (ETH) blockchain, has garnered significant attention. Its native token, WLD, emerges as the top performer among the top 100 cryptocurrencies by market capitalization. 

The token has experienced a remarkable 31% uptrend in just 24 hours and a staggering 217% surge over the past fourteen days. This surge not only marks a new all-time high for WLD but also positively impacts Alameda Research, the now-bankrupt trading arm of the defunct FTX exchange, which holds a substantial stake in Worldcoin.

Alameda Research’s Stake In Worldcoin Reaches $186 Million

According to on-chain data, Alameda Research, a cryptocurrency trading firm co-founded by Sam Bankman-Fried and Tara Mac Aulay in 2017, has witnessed a surge in its Worldcoin holdings. 

As WLD reached a new all-time high of $7.9788 on Monday, the trading firm’s investment in the project surged by $50 million, reaching a new record. Currently, Alameda Research holds 25 million WLD tokens, valued at $186 million, representing 33% of their total portfolio. 

Worldcoin

This portfolio also includes other digital assets such as Bitcoin (BTC), BitDAO (BIT), Ethereum (ETH), Stargate Finance (STG), and the FTX token FTT.

Whale Activity And AI Hype Drive WLD’s Price Surge

Analysts such as Zameer Attar attribute the WLD price spike to strong whale activity, with one notable whale wallet withdrawing 2.09 million WLD tokens ($5.82 million) from Binance.

This withdrawal caused a 25% surge in the price of Worldcoin, resulting in the whale’s holdings reaching an impressive $8.03 million. Additionally, the launch of OpenAI Sora by Sam Altman, one of the founders of Worldcoin, has triggered bullish action in WLD tokens. 

Interestingly, Sora can create videos of up to 60 seconds with highly detailed scenes, complex camera movements, and multiple characters with emotions, which surrounding the hype of artificial intelligence (AI) has spurred investor interest, leading to more bullish sentiment surrounding WLD.

Worldcoin, founded by Sam Altman, Alex Blania, and Max Novendstern, aims to revolutionize the global identity and financial network by creating a public utility known as World ID. 

This privacy-preserving identity network enables users to verify their humanness online while maintaining their privacy through zero-knowledge proofs. The project has garnered significant funding, raising over $250 million across various funding rounds from investors, including a16z, Khosla Ventures, Bain Capital Crypto, Blockchain Capital, and Tiger Global.

The combination of whale activity and positive market sentiment surrounding AI technologies has contributed to the considerable surge in Worldcoin’s price.

Worldcoin

Featured image from Shutterstock, chart from TradingView.com 

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FTX And IRS Lock Horns Over $24 Billion Tax Bill, FTT’s Key Support Wavers

In a striking turn of events, the Internal Revenue Service (IRS) in the United States has presented a staggering tax bill of $24 billion against the bankrupt cryptocurrency exchange FTX. 

FTX Challenges IRS’s $24 Billion Tax Bill

According to court filings and FTX’s response to the IRS’s claims, several key arguments challenge the basis of the tax bill. Firstly, FTX highlights that its operations spanned three years, never distributing dividends or earnings. 

Secondly, the exchange’s defense attorneys claim that the company incurred substantial losses rather than generating income that could support the IRS’s “exorbitant” tax claim. 

Thirdly, the lawyers argue that FTX is currently in liquidation and is not engaged in any ongoing business activities apart from those required for the liquidation process. 

Finally, the company emphasizes that the recovery sought by the IRS would ultimately come at the expense of FTX’s victims, as the funds would be redirected away from their rightful recipients. 

As the court hearing approaches, FTX asserts that proceeding with a court-supervised estimation process would demonstrate the company’s significant losses during its operational period, rendering the IRS’s claim “baseless.” 

FTX emphasizes that any forced payment would harm the victims of the FTX fraud, many of whom are already grappling with “profound losses.”

FTX’s administrators have managed to recover approximately $7 billion in assets, including $3.4 billion in cryptocurrencies. These figures underscore the complex financial landscape surrounding the IRS’s claim against FTX.

As the courtroom showdown ensues, the case outcome will undoubtedly have significant implications for the future of crypto taxation and the recovery prospects of FTX’s creditors. 

FTT’s Bullish Trend Holds Strong

As the cryptocurrency market experiences a significant correction following a bullish surge led by Bitcoin (BTC), FTX’s native token, FTT, has seen a decline of over 5% in the past 24 hours, adding to the company’s legal concerns.

After a three-month accumulation phase that kept FTT trading in a range between $0.9 and $1.2 from September to the beginning of November, the token witnessed an impressive surge in the last month, reaching its highest price of the year at $6.042, a level not seen since November 2022.

FTX

However, the token has retraced to its current price mark of $4.8, with the next support level at $4.45 in case of further downward movement.

On a positive note, FTT is trading above key moving averages, including the 200-day and 50-day MA, which provide support and indicate the potential for further upward price action.

Furthermore, since the beginning of November, FTT has consistently recorded higher highs and higher lows, forming an uptrend pattern. This trend has been observed three times, with the token experiencing an uptrend, followed by a pullback for a support test, and then a continuation to reach new highs.

Assuming this trend continues and the legal developments do not have a significant impact on the price of the token, FTT may be poised for a significant rise in the coming months, given the remarkable uptrend pattern seen on the daily chart.

Featured image from Shutterstock, chart from TradingView.com 

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Disgraced FTX Co-Founder Placed On Suicide Watch In Prison, Reveals Former Inmate

Sam Bankman-Fried, the co-founder of the FTX crypto exchange, who was recently found guilty of multiple counts of criminal fraud, reportedly faced a harrowing experience while incarcerated. 

According to a former mobster turned federal informant, Gene Borrello, who shared a prison cell with Bankman-Fried, the disgraced crypto executive was placed on suicide watch and endured challenging conditions during his time at Brooklyn Metropolitan Detention Center (MDC) while awaiting sentencing next year.

FTX Co-Founder Subjected To Extortion

The details emerged during an interview with crypto blogger Tiffany Fong, where Borrello disclosed the troubling circumstances surrounding Bankman-Fried’s imprisonment. 

The former detainee recounted how Bankman-Fried was subjected to suicide watch, extortion attempts, and even periods of self-neglect, including refusing to eat or shower for several days.

In an attempt to protect Bankman-Fried from potential harassment or extortion, authorities segregated him from gang members within the prison facility. However, despite these precautions, Borrello’s intervention reportedly foiled an extortion plot against the crypto mogul.

Borrello further revealed that he prevented the extortionists from coercing Bankman-Fried into sharing a bunk with them, placing the FTX co-founder in a solitary wing. Additionally, Bankman-Fried’s parents reportedly requested his transfer to the solitary unit to ensure his safety.

Drastic Change In Prison?

Describing the physical and emotional toll on Bankman-Fried, Borrello highlighted the crypto executive’s frail appearance, likening it to that of an elderly man. Borrello stated on the matter:

He has the body of an 80-year-old man. He has, like, no shape to him. When he talks to you, he puts his head down; he’s very timid, he talks very nervously. 

Borrello also noted Bankman-Fried’s timid demeanor, with the co-founder displaying signs of nervousness during interactions. 

In one conversation, Borrello confronted Bankman-Fried, stating that he had never been in a physical altercation before and questioned his association with gang members.

As reported by our sister site, Bitcoinist, Bankman-Fried received unique treatment in prison, where he allegedly received special privileges for sharing cryptocurrency-related information with prison guards and fellow inmates.

However, Borrello’s account offers a contrasting perspective, emphasizing the challenges and vulnerabilities the disgraced executive faced behind bars.

As Bankman-Fried’s sentencing approaches, his time in prison, including allegations of bullying and the ultimate impact on his legal proceedings, continues to draw attention. 

The revelations from Borrello’s interview provide a rare glimpse into the world of the disgraced FTX co-founder, and it remains to be seen what other revelations may be made in prison for Bankman-Fried as his sentencing trial looms in 2024.

FTX

At present, the native token of FTX, FTT, is trading at $4.0997, indicating a decrease of 2.8% in the past 24 hours. However, it is noteworthy that the token has experienced a substantial surge of 216% year to date.

Featured image from Shutterstock, a chart from TradingView.com 

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Bitcoin Exchange Outflows Reach Highest Value Since FTX Crash, Bullish?

On-chain data shows Bitcoin exchanges have registered the most significant outflows since the collapse of the crypto exchange FTX back in November.

Related Reading: Bitcoin Investors Turn Greedy For First Time Since March 2022

Bitcoin Exchange Netflow Shows Deep Negative Values

As an analyst in a CryptoQuant post pointed out, around 7,000 coins have left the exchange in this latest spike. The relevant indicator here is the “all exchanges netflow,” which measures the net amount of Bitcoin exiting or entering into the wallets of all centralized exchanges. The metric’s value is calculated by taking the difference between the inflows (the coins going in) and the outflows (the coins moving out).

When the indicator has a positive value, the inflows overwhelm the outflows, and a net number of coins are deposited to exchanges. As one of the main reasons investors deposit to exchanges is for selling purposes, this trend can have bearish implications for the price of the crypto.

On the other hand, negative values imply that a net amount of supply is currently being pulled off these platforms. Generally, holders withdraw their coins from exchanges to hold onto them for extended periods in personal wallets. Thus, such metric values can signal that investors are accumulating at the moment, which may have a bullish impact on the price.

Now, here is a chart that shows the trend in the Bitcoin all exchange’s netflow over the last few months:

Bitcoin Exchange Netflow

As shown in the above graph, the Bitcoin exchange netflow recorded a deep negative spike during the past day. This outflow amounted to around 7,000 BTC, leaving the wallets of these platforms the largest value the metric has seen since the FTX crash back in November of last year.

From the chart, it’s apparent that the aftermath of FTX’s collapse saw some substantial outflow values. The reason behind that is that a known exchange like FTX going belly up instilled fear among investors and made them more aware of the risks of keeping their coins in centralized platforms.

Naturally, these holders fled exchanges in masses (causing the netflow to plunge into red values) so that they could store their Bitcoin in offsite wallets, the keys they own.

Interestingly, the latest negative netflow spike was recorded while Bitcoin has been observing a sharp rally. Usually, inflows are more commonly seen in periods like now, as investors rush to take some profits.

Thus, instead of making these large outflows, investors are showing signs that they are bullish on Bitcoin in the long term and feel that the current rally has more to offer still.

That would be only if these investors made the withdrawals with accumulation in mind. In the scenario that they transferred out these coins for selling through over-the-counter (OTC) deals instead, Bitcoin could instead feel a bearish impulse.

BTC Price

At the time of writing, Bitcoin is trading around $23,100, up 8% in the last week.

Bitcoin Price Chart

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Bitcoin “Diamond Hands” Have Dumped 84.5k BTC Since FTX Collapse

Data shows the so-called Bitcoin “diamond hands” have shed 84.5k BTC from their holdings since the collapse of crypto exchange FTX.

Bitcoin Long-Term Holder Supply Has Sharply Declined Recently

According to the latest weekly report from Glassnode, the long-term holder supply has observed one of its most significant declines this year in recent days.

The “long-term holder” (LTH) group is a Bitcoin cohort that includes all those investors who have been holding onto their coins since at least 155 days ago, without having sold or moved them.

Statistically, the longer an investor keeps their coins still, the less likely they become to sell them at any moment. Since LTHs make up the group that keeps their coins dormant the most, they are the cohort that’s least probable to dump amid times of pressure.

The “long-term holder supply” is an indicator that measures the total amount of BTC that this group as a whole is holding in their wallets right now.

When the value of this metric slips down, it means LTHs have moved their coins, possibly for selling purposes. While an increase suggests these holders have been expanding their treasuries recently.

Now, here is a chart that shows the trend in the Bitcoin LTH supply over the past year:

Bitcoin Long-Term Holder Supply

The value of the metric seems to have been on the decline in recent days | Source: Glassnode’s The Week Onchain – Week 47, 2022

As you can see in the above graph, the Bitcoin LTH supply set a new all-time high of around 13.883 million BTC just a couple of weeks or so ago.

This peak was just before the crash triggered by the fall of crypto exchange FTX initiated. As soon as the price plunge started, however, the indicator’s value also began to go down.

This means that the LTHs were dumping their coins, contributing to the price decline. The decrease in their supply has been consistently happening in the last two weeks, suggesting that these resolute holders didn’t slow down even after the initial crash was over.

So far, the Bitcoin LTH supply has gone down by about 84.56k BTC since the ATH was set, taking the metric’s value to 13.799 million BTC.

While this drawdown is significant, it’s still less than the previous three selloffs seen in May, June, and July.

Nonetheless, this is still a sign of weakness from what should be the most resolute holder group in the Bitcoin market, and the selloff also still seems to be underway so it can can possibly even deepen.

BTC Price

At the time of writing, Bitcoin’s price floats around $15.7k, down 6% in the last week.

Bitcoin Price Chart

Looks like BTC has gone down during the past two days | Source: BTCUSD on TradingView
Featured image from Vasilis Chatzopoulos on Unsplash.com, charts from TradingView.com, Glassnode.com

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Bitcoin 7-Day Volatility Comes Alive As FTX Collapse Shakes Market

Data shows the Bitcoin 7-day volatility has come alive during the last week as the collapse of crypto exchange FTX has shaken up the market.

Bitcoin 7-Day Volatility Has Spiked To Values Above 7%

According to the latest weekly report from Arcane Research, the current 7-day volatility levels are the second highest seen in this year.

The “volatility” is an indicator that keeps track of the average daily returns in the price of Bitcoin over a specific period of time.

While this timespan can be of any length, the “7-day” and “30-day” versions of the metric are the most natural.

A notable feature of the volatility indicator is that it only measures returns using the closing prices on each day. This implies that any intraday market movements aren’t accounted for by the metric, so as long as the price returns to the norm by the end of the day.

When the volatility has a high value, it means the price of the crypto has fluctuated a lot recently. On the other hand, low values suggest the BTC market has been displaying stale activity.

Now, here is a chart that shows the trend in the Bitcoin 7-day and 30-day volatilities over the past year:

Bitcoin Volatility

Looks like the values of the metrics have spiked up in recent days | Source: Arcane Research’s Ahead of the Curve – November 15

As you can see in the above graph, both the 7-day and 30-day versions of the Bitcoin volatility have observed a sharp increase recently.

Before this rise, the indicator had very low values for a month or so, with the 7-day version especially reaching historical lows of 1%.

The collapse of FTX and the resulting market crash is behind the crypto’s sudden turn to volatile nature during the last week.

The 7-day volatility has surged above the 7% mark, reaching levels only behind the yearly high of June, when 3AC went bankrupt.

Historically, Bitcoin has become calmer following big spikes in the volatility like the one being observed right now.

However, the report notes that the current market environment is filled with contagion-related uncertainty and abnormal positioning in derivatives, so the market will likely continue to be volatile in the coming days.

BTC Price

At the time of writing, Bitcoin’s price floats around $16.7k, down 5% in the last week. Over the past month, the crypto has lost 12% in value.

The below chart shows the trend in BTC’s price over the last five days.

Bitcoin Price Chart

The value of the crypto seems to still be consolidating around $16.7k | Source: BTCUSD on TradingView
Featured image from Jievani Weerasinghe on Unsplash.com, charts from TradingView.com, Arcane Research