Crypto Chronicle with NewsCrypto
Good morning NewsCrypto readers and welcome back to another release of Crypto Chronicles!
If you've been hibernating through the crypto winter, it's time to wake up and smell the roses. Bitcoin's recent surge has the town talking, and we're here to break down if spring has truly sprung in the crypto world.
Let’s jump right in!
Here's what we got on the menu today:
1. Is the Crypto Winter Finally Behind Us?
2. FTX 2.0 in Plan?
3. Funny meme
Is the Crypto Winter Finally Behind Us?
Every crypto winter feels like it will never end but then Bitcoin suddenly pumps and everyone turns bullish and we go from winter to spring in a matter of days.
This time is not different. Bitcoin went from $27k to $35k in a matter of days, even Capo and ProfitBlue were proven wrong. The latter promised his followers he will pay $200 to everyone who retweets his tweet if Bitcoin hits $35k before $16k. We all know he won’t do it because he’d have to pay over $1.5 million, unfollow these engagement farmers and instead read our newsletter for “down to the ground” TA analysis and latest crypto news.
We are not the only ones believing crypto winter is behind us. Morgan Stanley, the Wall Street behemoth, recently released an article titled “Will crypto spring ever come?” where they delve into the four-year cryptocurrency cycle and the significance of Bitcoin’s halving.
Are We Seeing the First Buds of Spring?
Historically, Bitcoin's lowest prices in these winters have shown up about 12 to 14 months after the peak. Also, if Bitcoin's price drops by around 83% from its highest point. Another sign is if miners start slowing down because it's not profitable for them. And finally, if Bitcoin's price jumps up by 50% from its lowest point, it's a good sign that spring is in the air.
This time the price of BTC dropped by ≈78% in 12 months and exploded with a rally of 120% YTD. Even Bitcoin hash rate (activity of miners) dropped after FTX collapse, marked with purple circle on the chart, but has seen an unprecedented rise ever since which is a bullish sign.
If you are thinking about taking a loan and putting it all into crypto right now may not be the best time. Although we are bullish it doesn’t mean prices can’t drop all the way down to $20k. Unlikely but there’s a chance. We think it’s likely that we touch $30k before the halving and this might be the best entry we get before bull run really kicks off.
FTX 2.0 in Plan?
FTX is currently considering proposals from three bidders to potentially bring exchange back to life, or at least a version of it, without Sam Bankman-Fried as a CEO of course.
During a recent court hearing, Perella Weinberg Partners’ Kevin Cofksy, an investment banker for FTX, mentioned that the company is planning to make a decision on these proposals before we bid adieu to this year.
Speaking of the SBF who is currently in a courtroom, facing seven federal fraud counts. It's week four of his trial, and we hope you have your popcorn ready because SBF is planned to take the witness stand and testify today!
Earlier in September, a document revealed that about 75 bidders were approached regarding the next chapter of FTX, cheekily dubbed "FTX 2.0." By early October, FTX proposed a settlement plan to resolve "customer property disputes," aiming to return approximately 90% of the funds to its customers of which $3.4 billion is in crypto - heavy sell pressure on the market. This proposal is expected to be part of the reorganization plan set to be filed in December.
For those who missed the previous newsletters, FTX filed for bankruptcy last November. But as they say in showbiz, the show must go on!
We are eagerly waiting for SBF’s testimony and the resolution of bankruptcy filing. Let’s get SBF what he deserves!