The FTX collapse is threatening the crypto markets with further slumps after Bitcoin plummeted to $15,900 levels on Monday. BTC is at its November 2020 lows and shed all gains that it generated during the bull run in 2021. The trust in the markets and industry players has eroded after the fiasco that could hit cryptos hard. Around $265 billion has been wiped out in a week and the overall crypto market cap has fallen to $838 million from $1.1 trillion.
Bitcoin looks weak as the bears have an upper hand for 11 months straight in 2022. The Russia-Ukraine war, Terra collapse, bankruptcy of Three Arrows Capital, Celsius, Voyager, FTX, Alameda, and high inflation, among others, have made the markets weaker. It is highly unlikely that leading cryptos can come out of this mess quickly and could move at a snail’s pace in the market.
How Long Will Bitcoin Take to Recover From the FTX-Induced Crash?
Nicholas Merten, the founder of DataDash has predicted that Bitcoin could have another leg down in the coming weeks. He said to his half-a-million YouTube subscribers that BTC is showing weakness as it remains below the 200-week moving average. Merten has predicted that Bitcoin could reach $13,600 next and could bottom out at around $10,000 levels.
He added that the FTX collapse will take the crypto industry back in years as confidence among investors is broken.
According to Merten, Bitcoin and the crypto markets can take a minimum of 1 or 2 years to recover from here.
“It is an embarrassment to the industry, and trust me I have no incentive to say this. It is going to set this industry back. Plus all that happened with Celsius and Voyager and all the major players out there. It’s going to set this industry back a year plus. You can bet on it. At a minimum, potentially a year or two years with the distrust this is going to build for institutions,” he predicted.
At press time, Bitcoin was trading at $15,994 and is down 5.1% in the 24 hours day trade. BTC is also down 76.8% from its all-time high of $69,044, which it reached in November last year.