The world’s largest cryptocurrency is under selling pressure and has fallen below $16,000 for the first-time since 2020. The entire crypto market has been affected by the collapse of the crypto exchange FTX. The market has been faced with the challenge of meeting the increased liquidity demand by crypto lenders.
CoinGape’s first article was Warning: Bitcoin (BTC), Could Drop to $5,000 in Another Domino After FTX appeared on CoinGape.

  

The world’s largest cryptocurrency is under selling pressure and has fallen below $16,000 for the first-time since 2020. The entire crypto industry has been affected by the collapse of FTX, a crypto exchange.
The liquidity demand has risen for crypto lenders, which has made it difficult for them to meet it. BlockFi, a crypto lender, is already in danger of going bankrupt. Genesis, a crypto lender is trying to raise $1 billion to pay off its withdrawals. The problems continue as cryptocurrency exchange Binance refused to invest in Genesis, citing conflict of interest.
Market analysts fear that the fall Genesis could cause a massive collapse in the crypto market. Peter Berezin (chief global strategist at BCA Research Inc.) wrote this note to investors:
“FTX’s demise is more like Enron’s than Lehman. A lot of crypto sector is built on a foundation of fraud and greed that no amount of technobabble could disguise.
Berezin also reiterated his long-term goal for Bitcoin at $5,000. This means that Bitcoin could see a further 66% price correction compared to the current levels.
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Profitable Bitcoin Transactions Fall to a 3-Year Low
According to on-chain data, Bitcoin address activity has risen to a 6-month high despite the fact that it is under $16,000 and faces selling pressure. Investors have had to shift their coins off the exchange into self-custody because of the FUD caused by the FTX crash.
Traders are being forced to sell their assets due to increased selling pressure for BTC. According to Santiment, the number profitable transactions has fallen to its lowest level in three years. It also added:

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Many traders have decided to exit the sector or liquidate their assets after $BTC dropped below $15.8k. #Bitcoin has seen the lowest number of transactions made while in profit for over a year. This is since Nov 2019. This metric is often very negative and bounces are common.
Courtesy of SantimentBitcoin miners face major challenges in continuing their operations due to the price crash and rising energy prices. Bitcoin has fallen below $16,000 and the miners have been selling again recently, which could lead to a further correction.

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