The Crypto markets are about to implode. Binance walks away from the FTX acquisition. Will soon-to-be slew of Crypto insolvencies be bailed out by Central Banks and Government? Bitcoin is close to breaking through the 15000 psychological support.

 

The Crypto market is in trouble.  The mega Crypto platform Binance walked away from acquiring its rival FTX, probably in lieu of the fact that FTX, after a preliminary due diligence, that FTX is completely insolvent.  Meaning that it's assets are worth less than it liabilities.  Do we learn, ala Lehman Collapse of 2008?  As mentioned in this post, the spill on effect of Crypto coins interlinked in a complex web of virtual monies, i.e. a digital illusion, the market is underwritten by real money, which is the U.S. Dollar (USD) and traded against the weight of USD as it fluctuates.  And since we are, believe or not, in a high interest rate environment, which favors the USD, speculation is coming undone.   

The concern that it could trigger a liquidity crisis, depending on how many institutional investors are holding assets and providing loans to these Crypto exchanges.  In the meantime a liquidation of Crypto is taking place.

Chart 1, shows Bitcoin that looks very likely to break the 15000 psychology support.

You have to ask the question.   Would the government and/or Central Banks bail out Crypto?