that the potential FTX sell-off, when combined with other indicators that are already relatively bearish, could amplify downside pressure on bitcoin. He pointed to on-chain data that showed declining bitcoin trading volume for both spot and derivative activity.to having fallen below $10 billion for the first time since November 2020.
Another factor adding downside pressure is a possible divestment from crypto hedge funds,"who still seem to be a bit overextended based on our analyses," Dragosch said. He said a decrease in macro liquidity, largely attributed to the tightening of central bank monetary policies, was also adding a downside factor, with a continuous shrinkage in stablecoin market caps indicating there is less"dry powder" available for investing in crypto assets like bitcoin.
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