A new analysis suggests that Bitcoin's failure to reach $100,000 during the 2021 bull run might be attributed to the activities of the defunct exchange FTX, which continued selling BTC at critical points. This revelation comes as the trial of former FTX CEO Sam "SBF" Bankman-Fried unfolds and highlights potential market manipulation.
Joe Burnett, the Senior Product Marketing Manager at Unchained, a Bitcoin financial services company, has entered the debate. He argues that FTX executives actively suppressed Bitcoin's price strength during the bull run. The trial testimony paints a picture of market manipulation, indicating that Bankman-Fried demanded selling BTC if spot prices breached $20,000. What is significant is that this was done using FTX client funds, which they were not authorized to utilize.
Burnett suggests that the impact of such behavior could have affected the entire Bitcoin bull run. He implies that false selling pressure, originating from Alameda Research's insolvency during the bull market, may have prevented Bitcoin from reaching $100,000 in 2021. During the 2021 bull run, Bitcoin did reach an all-time high of $69,000, although many predictions at the time, such as those based on the Stock-to-Flow (S2F) Bitcoin price model, called for higher levels.
The S2F model, created by a pseudonymous entity known as PlanB, had projected a BTC price target of $288,000 during that halving cycle. However, the model faced substantial criticism when Bitcoin failed to reach those levels, and it was widely scrutinized. While some still remain optimistic about Bitcoin's trajectory, Sam Bankman-Fried's actions are drawing ridicule on social media, with his motives under scrutiny.
Some, including Adam Back, the CEO and co-founder of Blockstream, have questioned whether Bankman-Fried's intentions were aimed at curtailing the market's growth.
