FTX Sunk! What’s Next for Bitcoin and Altcoins?

Morgan Stanley analysts are pulling their Bitcoin price predictions below $13,000 with the bankruptcy of FTX. However, it looks like many centralized exchanges will follow the decline in the coming days. Let’s take a look at what’s next for the cryptocurrency market this week.

Investors move from exchanges to their own wallets

In the first days of the week, crypto investors panicked and pulled record amounts of Bitcoin, Ethereum and stablecoins from exchanges. Separate reports show a sharp increase in hardware wallet sales as investors realize the importance of storing their portfolios in a cold wallet. However, if the “temporary suspension of deposits and withdrawals” messages from centralized exchanges continue to come, it seems that the flow from exchanges to cold wallets will continue.

DEXs and DeFi platforms have seen an increase in entries

Simultaneously with the increase in DEX activity and record exits from exchanges, there was an increase in DeFi entries. After the events of the past two weeks, trust in centralized exchanges and crypto companies is waning. As a result, the next wave of crypto investors may adopt the more Web3-oriented DEX and DeFi protocols.

Constant streams of bad news can offer good opportunities for Bitcoin and Ethereum

At the moment, Ethereum’s price seems weak in terms of technical analysis. The funds stolen in the FTX hack you followed from Kriptokoin.com contained a large amount of ETH. It also includes some FUD for FTX and Alameda’s Ethereum-based protocols.

Meanwhile, it is still unclear when the Shanghai (Shanghai) update will take effect. In addition, investors’ concerns about when the staked coins might actually withdraw are also turning the short-term sentiment against Ethereum.

On the overall picture, Ethereum price held the support pretty well around $1,200-1,300 throughout bearish market developments. But will the above-mentioned potential challenges lead to a retest of the level? Analyst Big Smokey answers this question as follows:

Stakers are essentially spot long-term and that’s how they get their returns. Therefore, at this point, it would probably be rewarding to open a low short position by taking profit orders of $700-$600.

How much Bitcoin and Ethereum were lost in the FTX hack?

As of November 19, PeckShieldAlert posted a tweet stating that the main cryptocurrency wallet associated with FTX is holding 250,735.1 Ethereum. This amount of ETH is worth $302.6 million at the time of writing.

The most recent transactions involve an associated account that has exchanged over 44,000 BNB for 3,000 ETH and $7.5 million in stablecoins. These stablecoins were then exchanged for 6,200 ETH, according to EtherScan. This ended with a total of 9,200 ETH transfers to the main FTX drain wallet. Two other associated wallets have also transferred more than 10,000 ETH to the main wallet.