Bitcoin (BTC) failed to reach $100,000 during the 2021 bull run as shuttered exchange FTX kept selling BTC, analysis said.
in a X posts On October 12, Joe Burnett, senior product marketing manager at Bitcoin financial services company Unchained, also joined the debate, believing that FTX executives suppressed the strength of BTC prices.
FTX Testimony Shows Massive BTC Sell-Off
As the trial of former FTX executive Sam Bankman-Fried (SBF) continues, new testimony paints a picture of market manipulation.
Caroline Ellison, the former CEO of affiliate Alameda Research, reportedly told a court this week that Bankman-Fried asked her to do so when spot prices breached $20,000. Sell BTC. This is done using FTX client funds, none of which are authorized to be deployed.
Australia: What are these?
Allison: Notes from conversation with Sam. I wrote to continue selling Bitcoin if it exceeds $20,000.
AUSA: You wrote that FTX may raise capital. what does that mean?
Allison: Raise money by selling equity to get more money.For investors like Saudi Prince MSB— Inner City Press (@innercitypress) October 11, 2023
Burnett said the entire Bitcoin bull run could be adversely affected due to the scale of the business involved.
“Even during the bull market, Alameda was insolvent. It appears they used (or ‘borrowed’) FTX customer Bitcoin and other customer assets to purchase ‘Sam Coins’ (FTT, Solana, and Serum),” he wrote , referring to reports that Ellison’s company had a negative value of $2.7 billion in 2017. 2021.
“Without this false selling pressure, Bitcoin might reach $100,000 in 2021.”
SBF to S2F
As a result, BTC/USD still reached an all-time high of $69,000 in November of that year, but predictions at the time required much larger numbers.
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These include the then-popular Stock-to-Flow (S2F) Bitcoin price model, whose creator, an anonymous entity called PlanB, gave a whopping $288,000 BTC price target during the current halving cycle.
He continued that the “worst case scenario” is a loss of $135,000 by December 2021.
Elon Musk’s energy FUD and China’s mining crackdown have triggered Bitcoin prices below $34,000.
There’s also a more fundamental reason why we’re seeing weakness in June and even July. My worst case scenario for 2021 (based on price/on-chain): August >47K, September >43K, October >63K, November >98K, December >135K pic.twitter.com/hDONOVgxH1
— PlanB (@$100T) June 20, 2021
After Bitcoin failed to reach these levels, both S2F and PlanB themselves saw strong public criticism.
While PlanB continues to be optimistic about the direction of Bitcoin, SBF’s collapse is quickly becoming a source of laughter on social media.
I can’t stop thinking about another timeline
-SBF is the President of the United States
-Bitcoin breaks 100,000
-FTX Token Flip BTC
– Meat is illegal
-US annexes the Bahamas
-All females over 3 years old will be deported
— Doge Cuban (@DogecoinCuban) October 11, 2023
Others disagreed with Bankman-Fried’s motives. In response to Ellison’s testimony, Blockstream CEO and co-founder Adam Back questioned whether he was actually trying to curb market growth.
So, to me, this sounds more like the SBF “needs USD liquidity to sell BTC, but don’t sell below $20,000” rather than “try to keep BTC below $20,000. That is, below $20,000 Ten thousand dollars is a bargain, wait for higher prices.” https://t.co/UKGQMGUKH2
— Adam Baker (@adam3us) October 12, 2023
This article does not contain investment advice or recommendations. Every investment and trading activity involves risks, and readers should do their own research when making decisions.
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