Bitcoin sells off as auditing firms cease audits of Binance and other exchanges. May indicate that the books are cooked. FTX was just the tip of the iceberg, the whole crypto 'eco-system' could collapse.

The Bitcoin (BTC) underwrite is most likely because of its use as the main collateral in the crypto so called eco system.  With the FTX mess the tip of the iceberg, in displaying how overly complicated the crypto markets became which is akin to a digitalized Ponzi scheme.   Aware that Blockchain is just a glorified database and the main crypto BTC has absolutely no inherent value.   The other important question which effects the FTX meltdown and so-to-be Binance, is their state of accounts.  As discussed here, the overt speculation that drew in billons of dollars into FTX and Binance, was on the back of pandemic stimulus cheques, youtube paleolibertarians, paid celebrates and a certain billionaire on Twitter touted the right wing utopia.  Greed did the rest. 

The above chart shows the the November 2022 meltdown of BTC in light of FTX going belly up  (blue crosshair), shedding 4K work 'value' in less than a month.  Collapsing into a trading range of 17344 and 16000.   Which could indicate that the red lines drawn under 16000 and 15000 is when a slew of margin calls could kick in, more so for the larger Cryto exchanges and institutional investors that have backed company's like Coinbase.  Which would make sense why BTC has been trading sideways since FTX blew up.   More concerning is Binance, the biggest crypto exchange by  capitalization, when auditing firm Mazars decided to suspend audits of Binance account/s, due to the fact that it cannot attain a clear report of Binance's financial situation, which has everything to do with how financially secure the company actually is.  In turn, this looks like, to the market, a covering over, by laying complexity in its accounts more than not.  Hence on the news that the auditor withdrew its investigation of Binance's books, BTC fell below 17000. Now trading above the 16700, BTC if it is used heavily as a collateralized 'coin' could fall further.  Therefore BTC is now the bellwether for the entire crypto market.

The other main play to watch is of course Binance, which if it does go under and an auditor cannot confirm to the crypto market and broader market i.e. Asian sovereign funds, that it can ride out the storm.  It actually maybe insolvent.   Who would bail it out?