FTX Executives Accused of Suppression
A recent analysis suggests that Bitcoin (BTC) failed to reach $100,000 during the 2021 bull market due to the selling of BTC by defunct exchange FTX. Testimony from the trial of former FTX CEO Sam Bankman-Fried reveals allegations of market manipulation.
FTX Customer Funds Used to Suppress BTC Price
Caroline Ellison, former CEO of affiliated firm Alameda Research, testified that Bankman-Fried instructed her to sell BTC if the spot price exceeded $20,000. These sales were made using FTX customer funds, which were not authorized for such purposes.
Possible Adverse Effect on Bitcoin Bull Run
The scale of the operations suggests that the entire Bitcoin bull run may have been negatively impacted. Reports indicate that Ellison’s firm had a negative value of $2.7 billion in 2021, raising questions about the authenticity of the sell pressure.
Bitcoin Falls Short of Predicted Price Levels
Despite reaching an all-time high of $69,000 in November 2021, Bitcoin did not meet the expectations set by the popular Stock-to-Flow (S2F) price model. The creator of S2F, known as PlanB, predicted a price target of up to $288,000 during the halving cycle, but the actual price fell short.
Controversy Surrounding FTX and PlanB
While some find amusement in the SBF debacle on social media, others question Bankman-Fried’s motives. Blockstream CEO Adam Back suggests that Bankman-Fried may have been seeking USD liquidity rather than intentionally suppressing the BTC price.
Note: This article does not provide investment advice. Readers should conduct their own research and exercise caution when making investment decisions.
Did you miss our previous article...
https://trendinginthenews.com/crypto-currency/mastercards-successful-wrapped-cbdc-trial-results
