Bitcoin (BTC) failed to reach $100,000 during the 2021 bull market because defunct exchange FTX continued to sell Bitcoin, analysis claims.
in Share X On October 12, Joe Burnett, senior product marketing manager at Bitcoin financial services company Unchained, joined the voices arguing that FTX executives suppressed Bitcoin’s price strength.
FTX certification reveals BTC sold in large quantities
As the trial of former FTX CEO Sam Bankman Fried, known as SBF, continues, new testimony paints a picture of market manipulation.
This week, Carolyn Ellison, the former CEO of Alameda Research subsidiary, reportedly told the court that Bankman-Fried had asked her to sell Bitcoin in the event of a $20,000 price violation. This was done using FTX client funds, which neither of them had the right to publish.
Osa: What is this?
Ellison: Notes from a conversation with Sam. Continue selling Bitcoin if its price is over $20,000, she wrote.
AUSA: You wrote, you may raise FTX. What does it mean?
Ellison: Raise capital by selling stocks to get more money. For investors like MSB, Saudi Prince
– Inner City Press (innercitypress) October 11, 2023
In response, Burnett suggested that given the scale of operations involved, it is possible that Bitcoin’s entire uptrend could be negatively affected.
“Alameda was insolvent even during the bull market. They apparently used (or ‘borrowed’) FTX client’s Bitcoin and other client assets to buy ‘Sam’s tokens’ (FTT, Solana, and Serum),” he said, referring to reports that Ellison had Negative value of $2.7 billion in 2019. 2021.
“If it weren’t for this fake selling pressure, Bitcoin probably would have reached $100,000 in 2021.”
SBF vs S2F
In this case, the BTC/USD price still reached an all-time high of $69,000 in November of that year, but at the time, forecasts called for much larger numbers.
Related: Sam Bankman Fried Blames Binance for Leaking Balance Sheet to Media: Court Evidence
Among those models was the then-popular Stock-to-Flow (S2F) Bitcoin price model, whose creator, the anonymous entity known as PlanB, gave a target price for Bitcoin of $288,000 during the current halving cycle.
He continued, “The worst-case scenario is $135,000 by December 2021.”
Bitcoin price is below $34K, due to Elon Musk’s energy FUD and China’s mining crackdown.
There is also a more fundamental reason that we see weakness in June, and perhaps July. My worst case scenario for 2021 (price/series basis): Aug > 47k, Sep > 43k, Oct > 63k, Nov > 98k, Dec > 135k pic.twitter.com/hDONOVgxH1
– Plan B (@100 trillion USD) June 20, 2021
After Bitcoin failed to reach those levels, S2F and PlanB saw the same Significant public criticism.
While PlanB continues to offer optimistic predictions about the direction Bitcoin is headed, the SBF debacle has quickly become a source of amusement on social media.
I can’t stop thinking about an alternate timeline where…
-SBF is the President of the United States
– Bitcoin reaches 100 thousand
-FTX token flips BTC
– Meat is illegal
-The United States includes the Bahamas
-All women over 3 years old will be deported
– Doge Cuban (@DogecoinCuban) October 11, 2023
Others disagree with Bankman-Fried’s motives. In response to Ellison’s testimony, Adam Back, CEO and co-founder of Blockstream, questioned whether he was really seeking to stifle market growth.
So it seems to me that SBF is “needs USD liquidity to sell BTC, but don’t sell below $20k” and not “trying to keep BTC below $20k. That is, below $20k is ridiculously cheap, wait higher . https://t.co/UKGQMGUKH2
– Adam Buck (@adam3us) October 12, 2023
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.