The effects of the dramatic collapse and fallout of the cryptocurrency exchange FTX are still lingering. What’s more, it doesn’t seem like it will ever end. The CEO of Online Blockchain warns that Bitcoin (BTC) could drop to $8,000 “as the FTX crisis remains unresolved.”
“Bitcoin rises like a rocket and falls like a rock”
As you follow on Kriptokoin.com, the collapse of FTX has caused Bitcoin and altcoins to drop more than 60% in value this year. In addition, the damage assessment has not been done yet. Because the damage also affected public companies investing in digital assets. Given this situation, analysts are trying to predict the next short-term move of the leading crypto. Online Blockchain CEO Clem Chambers gave an interview to Daniela Cambone of Stansberry Research. Discussing whether the worst is over for Bitcoin, Chambers says:
No, I don’t think it’s over. What people don’t understand is that a centralized exchange is a bad thing. First, it is centralized. The whole point about crypto is that it is decentralized. Stock markets are definitely not stock markets, they are banks where you deposit your money.
Clem Chambers points out that if nothing else goes wrong, things can turn around ‘by a miracle’. However, he warns that the price of Bitcoin will likely drop rapidly. Chambers explains:
Bitcoin rises like a rocket and falls like a rock. If the dominoes, namely the stock markets, start to fall one after another, then it is possible that we can see Bitcoin easily drop to $7,000 or $8,000.
“It would be a miracle for BTC and crypto to recover by this time”
Clem Chambers predicted on September 12 that Bitcoin would reach $17,000. He also noted that if it reaches this price, it will likely drop to $10,000. BTC is now trading slightly below this price. Accordingly, the crypto expert believes that the market recovery could take up to 18 months. In other words, there is no recovery until 2024, when the Bitcoin halving will take place. It highlights the following:
People will bandage for months after FTX. It won’t be until halving until there is any buying pressure.
Clem Chambers also says he wanted to buy at $20,000, but once Bitcoin got there it felt like a bottom.
This FTX thing didn’t feel like final when it happened, it’s still unresolved. Also, the Genesis, Gemini, and Grayscale issue remains unresolved. And if they are not miraculously resolved, there will be other unresolved events. Then where will all this end? Well, it ends with a thing called surrender.
Ultimately, Chambers believes in decentralized technology. But he also says it has issues like the central part of the crypto space. In this context, “Bitcoin is decentralized. Everything I love and believe in is decentralized,” she says.
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