Crypto Observer Nicholas Merten: FTX Bangkrut Makes Crypto Industry Malu, It Takes Time To Restore Trust

FTX's leading crypto exchange goes bankrupt. (Photo; Doc. Crypto Ninjas)

JAKARTA The collapse of the FTX leading crypto exchange has been a major focus of various circles, from the US government to traders and investors. One of the crypto analysts, Nicholas Merten recently commented on the FTX's collapse which was considered to have caused the crypto industry to experience setbacks.

The FTX eruption sparked a domino effect on related companies and the crypto industry in general. Last November 11, FTX filed for bankruptcy and has a debt of 10 billion US dollars.

A few days earlier, Binance resigned from its plan to acquire FTX after conducting an internal financial assessment of Sam Bankman-Fried's crypto trading company.

FTX occupied a list of crypto companies bankrupt after the Three Arrows Capital, Celsius Network, and Voyager which were triggered by the drop in Terra LUNA last May. Observer Nicholas Merten believes the crypto company's collapse has embarrassed the industry itself. This condition dragged the drop in the price of the largest crypto asset by market cap, Bitcoin (BTC).

In a new strategic session, Merten told its 512,000 YouTube subscribers that Bitcoin is showing a clear weakness as it remains below the 200-week moving average, most likely another drop. It doesn't stop there, even Merten predicts a potential drop in BTC prices to $13,600 per BTC in the middle of this bear market.

"Kita jauh di bawah rata-rata pergerakan 200 minggu itu. Ini adalah yang pertama dalam sejarah Bitcoin. Selain itu, kita hanya melihat persentase penurunan dari atas ke bawah, kita mencapai sekitar 77,6%," ujar Merten, dilansir DailyHodl.

He also added that the current conditions are close to the target (decreasing) of 80%.

Merten also appealed to crypto traders and investors to be careful amid the potential threat of a drop in BTC prices due to the collapse of FTX. I would say, once again, even though everyone has different opinions about this, to be a little more careful, "he concluded.

Merten said the collapse of FTX, exacerbated by another recent failure from crypto lending firm Celsius and brokerage firm Voyager, might keep prices in consolidation for at least a year, or maybe even two more years.

"This (the crypto company's bankruptcy) is embarrassing for the industry, and believe me I don't have incentives to say this... It will put the industry back down. Plus everything that happens with Celsius and Voyager and all the major players out there, it will put the industry back down for more than a year. You can bet on that. At least, potentially one or two years with distrust that will be built for the institution," crypto observer Nicholas Merten said on his YouTube channel, November 13, 2022.