Crypto Crash Will Bring New Market Lows: BitMex CEO

Crypto Crash News Updates: In line with popular belief, experts predict the market is heading towards a crypto crash that could potentially lead to new lows in cryptocurrency values. After the FTX and Alameda Research situation played out, the crypto market saw a crypto crash with the FTX Token (FTT) dropping by around 80% in the space of 24 hours. After Binance CEO CZ announced his company would potentially acquiring FTX, the prices of all cryptocurrencies took the plunge.

New Market Lows With Deeper Crypto Crash?

In this context, BitMex CEO Arthur Hayes feels the crypto market would soon reach new market lows. Although he is bullish on the crypto market in long term, Hayes is predicting a deeper crypto crash. The BitMex CEO made the comments in a detailed account of his take on the current market situation. He expressed confidence on the crypto market going forward in 2023.

“While I am supremely bullish on the prospects of crypto in 2023, I believe we are about to trade to new lows.”

Will FTX Binance Deal Go Through?

Meanwhile, reports suggest Binance will after all not proceed with the deal after initial round of assessment of FTX’s financials. It was said in the non-binding letter of intent for acquisition that FTX will go through the process of due diligence. However, latest reports say that Binance is more inclined towards rejecting the deal offer. The assessment is based on evaluation of FTX’s internal data and loan agreements.

It remains to be seen if the crypto crash deepens to new market lows if the deal does not materialize. In that case, the bigger question would be what is the alternative solution for FTX’s liquidity crunch. Also, the exchange might attract regulatory attention considering the scale of impact. The U.S. SEC is already probing the relationship between the US arm of FTX and Alameda Research. The regulators are reportedly probing the manner in which FTX handled user assets.