FTX Allegedly Suppressed Bitcoin Price Strength, Preventing $100K
An analysis suggests that Bitcoin (BTC) failed to reach $100,000 during the 2021 bull market due to the actions of defunct exchange FTX. Senior product marketing manager at Bitcoin financial services firm Unchained, Joe Burnett, joined others in claiming that FTX executives manipulated BTC prices. Testimony from the trial of former FTX CEO Sam Bankman-Fried revealed allegations of market manipulation. Caroline Ellison, former CEO of affiliated firm Alameda Research, stated that Bankman-Fried instructed her to sell BTC if the spot price exceeded $20,000. This was done using FTX customer funds without authorization.
Possible Adverse Effects on the Bull Run
The scale of these operations suggests that the entire Bitcoin bull run may have been negatively impacted. Reports indicate that Alameda Research had a negative value of $2.7 billion in 2021 and used customer assets to buy “Sam coins” (FTT, Solana, and Serum). Burnett argues that without this artificial sell pressure, Bitcoin could have reached $100,000 in 2021.
Bitcoin’s Performance Compared to Predictions
Although BTC/USD did reach an all-time high of $69,000 in November 2021, predictions at the time anticipated much higher numbers. The Stock-to-Flow (S2F) Bitcoin price model created by PlanB projected a BTC price target of up to $288,000 during the halving cycle. The worst-case scenario predicted by PlanB was $135,000 by December 2021. However, Bitcoin failed to reach these levels, leading to criticism of both S2F and PlanB.
Social Media Amusement and Differing Opinions
The SBF debacle has become a source of amusement on social media, with some imagining alternate timelines where Bitcoin hits $100,000 and FTX token flips BTC. However, others, such as Blockstream CEO Adam Back, question whether Bankman-Fried intended to stifle market growth or simply needed USD liquidity. The true motives behind FTX’s actions remain a topic of debate.
Hot Take: FTX’s Alleged Manipulation Hinders Bitcoin’s Rise to $100K
An analysis suggests that the failure of Bitcoin to reach $100,000 during the 2021 bull market can be attributed to the actions of defunct exchange FTX. Testimony from the trial of former FTX CEO Sam Bankman-Fried reveals allegations of market manipulation, including using customer funds without authorization. This alleged manipulation may have adversely affected the entire Bitcoin bull run. Additionally, Bitcoin’s performance fell short of predictions made by the Stock-to-Flow (S2F) model, leading to criticism and public skepticism. The true intentions behind FTX’s actions remain a topic of debate in the crypto community.
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