FTX Group, a failed crypto exchange that collapsed into bankruptcy in November, has found over $5 billion in cash or crypto assets that it may be able to sell to help repay creditors, according to company attorney Andrew G. Dietderich. The company is working to monetize assets with a book value of $4.6 billion, and is also trying to identify customers and transactions. A judge has approved a request from the company to keep the names of its 9 million creditors and customers secret, as they are considered a valuable trade secret. Four US senators have requested an independent examiner to investigate FTX, due to potential conflicts with the company’s lawyers.
FTX Group Still Hampering Crypto?
The FTX Group’s collapse has specifically affected crypto markets, as the overall crypto market can be influenced by a variety of factors. However, the collapse of a major crypto exchange like FTX has a negative impact on market sentiment and damaging investor confidence in the cryptocurrency platforms and systems. The FTX Group fiasco makes Crypto look like a Ponzi scheme.
FTX’s collapse has increased scrutiny and regulation of the crypto industry, which could in turn affect the overall market. Additionally, the bankruptcy proceedings could cause uncertainty and disruption to the trading of certain assets and has the potential to cause a lack of liquidity.
Bitcoin is a highly volatile and speculative asset, making it difficult to forecast its price with certainty. The forecasted range from many experts see the currency anywhere between $5,000 to $250,000 for 2023. The valuation spread is quite broad and the direction of bitcoin depends on a number of factors, including the overall sentiment and demand for the crypto market, regulatory developments, and the overall global economic climate. It appears that the FTX event is starting to wear off as various cryptocurrencies are starting to stabilize. Bitcoin is the epicenter of crypto sentiment as a gage.
Some analysts and investors believe that the ongoing global economic uncertainty, as well as the increasing institutional adoption of Bitcoin and other cryptocurrencies, could lead to significant price growth in 2023. They argue that Bitcoin’s limited supply, coupled with its growing mainstream acceptance as a store of value, could lead to a significant increase in demand and therefore its price. This could potentially put the upper end of the range at $250,000.
On the other hand, there are also those who believe that the current high valuations for bitcoin and other cryptocurrencies are not sustainable in the long term and that a major correction is overdue. They argue that regulatory risks, security concerns, and a lack of infrastructure and liquidity are limiting the growth of the crypto market and could lead to a significant drop in prices. This could put the lower end of the range at $5,000.
It is very likely, that one thing is certain in the realm of cryptocurrencies and that is that more countries will discuss and enact new regulations in response to FTX. The question will be how much it hinders the current run in Bitcoin and other crypto currencies.