Binance Walks Away From The FTX Deal As Bitcoin Slowly Bleeds Out To $12k (possibly lower)

In a mere 24 hours, Binance went from signing a letter of intent to acquire rival exchange FTX facing a liquidity crunch, to walking away from the deal after due diligence.

Now, who knows what, if Binance found some unsettling things hiding in the books over at FTX HQ, or if Binance ever had any intent on buying (other than to prop up the FTT token price long enough to sell their holdings).

Although, considering the native FTX token FTT has lost a large portion of its value in a short period, who knows? In the last 24 hours, the token's value has shot up considerably. Many who tried to short FTT got seriously liquidated. Maybe it was just an easy opportunity for some people looking for a vulnerable token to pump or false hope the issues at FTX would be solved.

VC firm Sequoia Capital said it would completely write off its more than $210 million investment in FTX, as the cryptocurrency exchange is likely on the verge of bankruptcy.

FTX is apparently in discussions with different parties to try and salvage the mess they're in. But, they need a bailout of at least $8b. That's eight billion dollars. As you know, that's a lot of money in a good economy, let alone a bad one.

Now, I've seen some wild theories and speculation about who might be able to buy FTX. One name I've seen going around is Elon Musk. This guy bought a failing social media platform for $44b, and it's going terribly at present, so Elon is out of the equation, he has no money, and his reputation is in the urinal at a run-down sports bar right now.

The biggest problem right now is Bitcoin. I don't care about FTX, nor the people responsible for driving it into the ground. It's Bitcoin I care about. Despite inflation figures looking promising, Bitcoin is slowly bleeding at the moment. Realistically, BTC has very little support until $12k.

And here is the thing, Bitcoin is so big now that serious drops don't happen overnight. And despite whatever gains Bitcoin has made in the last 24 hours, we are witnessing Bitcoin possibly fall to $12k.

The current leg up we see on Bitcoin could be a whale trap. A little fake rally to lure in the suckers before the whales dump on them. We will see $15k soon enough, then down to $12k and possibly even lower.

Now, here is my prediction. FTX is too far gone. Whatever attempts there are to save it will ultimately fail. It's just too deep in a financial ditch to be saved. We're in a car hanging over the side of a cliff face, and the car is about to tip.

Like with everything, the contagion will spread like a highly contagious virus. Bitcoin is already hammered, but other cryptocurrencies will not too far behind as BTC brings everything else down around it.

As with anything crypto-related, do your research. But, also know I am not the only one issuing warnings about Bitcoin and its possible free fall. Like many things in crypto, self-fulfilling prophecies can mean more than fundamentals and technicals regarding price.