Arab Press

بالشعب و للشعب
Friday, Aug 22, 2025

Bitcoin jumps to a 2-week high of $17,000, but crypto experts say don't cheer the rally as FTX contagion is far from contained

Bitcoin jumps to a 2-week high of $17,000, but crypto experts say don't cheer the rally as FTX contagion is far from contained

Industry experts told Insider their crypto market outlook after FTX's sudden downfall, which has brought down other ailing firms.
Bitcoin notched a two-week high of about $17,000 on Wednesday, but experts said the fallout from FTX's crash has yet to fully play out.

In the past week, bitcoin and ethereum are up a respective 2.76% and 8.90%, according to Messari, despite continuous bad news within the industry. 

FTX, the once-$32 billion digital asset empire started by Sam Bankman-Fried, swiftly collapsed earlier this month and is raising contagion fears. Crypto lender BlockFi filed for Chapter 11 bankruptcy on Monday, revealing significant exposure to FTX. And industry giant Genesis is organizing restructuring lawyers to prevent the crypto brokerage from going bankrupt, Bloomberg reported Tuesday.

After losing two-thirds of its value since November 2021, the crypto industry continues to take hits — and despite the current bump in prices, the blows aren't done yet.

"I expect to see brief periods of excitement that produce strong [and] swift rallies, but I still see crypto-specific headwinds, as well as traditional market headwinds," Caleb Franzen, founder of research firm and newsletter Cubic Analytics, said.

He noted that even if the Fed slows the pace of its rate hikes, financial conditions keep tightening. And the decline in liquidity will "continue to expose overleveraged companies, bad actors, and 'naked swimmers,'" he added. 

Franzen see headwinds across the board for asset prices, with crypto looking particularly weak given the contagion events that have occurred.

Yaroslav Shakula, chief executive at venture studio YARD Hub, said bitcoin could be at a near-term bottom because it withstood the BlockFi news earlier this week.

"However, if the FTX-caused domino effect ends up impacting some other big crypto exchanges or funds, this upward correction could still give way to the continuation of the bearish trend," Shakula says. 

And even if the industry doesn't see more bankruptcy filings, that doesn't mean the contagion is over, warned Bitcoin.com CEO Dennis Jarvis.

For example, Genesis has taken a $175 million hit from FTX. Even if it weathers this storm, he said, liquidity restraints have put pressure on customers like Gemini, forcing it suspend its Earn lending program. "People are nervous, so even a whiff of trouble has the potential to snowball."

Elsewhere, Przemysław Kral, chief executive at crypto exchange Zonda Global, said that the FTX fallout has run its course because the token has barely dipped on the slew of bad news. 

"It's also been over a year now since Bitcoin's previous all-time high, which historically has always been a strong indicator of the bottom - in both 2015 and 2018," Kral added. "However, some believe a fall to around $13,800 (80% from ATH), would give true confirmation that the bottom is in."
Newsletter

Related Articles

Arab Press
0:00
0:00
Close
Dogfights in the Skies: Airbus on Track to Overtake Boeing and Claim Aviation Supremacy
Tim Cook Promises an AI Revolution at Apple: "One of the Most Significant Technologies of Our Generation"
Are AI Data Centres the Infrastructure of the Future or the Next Crisis?
Miles Worth Billions: How Airlines Generate Huge Profits
Zelenskyy Returns to White House Flanked by European Allies as Trump Pressures Land-Swap Deal with Putin
Beijing is moving into gold and other assets, diversifying away from the dollar
Trump Backs Putin’s Land-for-Peace Proposal Amid Kyiv’s Rejection
Zelenskyy to Visit Washington after Trump–Putin Summit Yields No Agreement
Iranian Protection Offers Chinese Vehicle Shipments a Cost Advantage over Japanese and Korean Makers
United States Sells Luxury Yacht Amadea, Valued at Approximately $325 Million, in First Sale of a Seized Russian Yacht Since the Invasion of Ukraine
Saudi Arabia accelerates renewables to curb domestic oil use
Cristiano Ronaldo and Georgina Rodríguez announce engagement
Asia-Pacific dominates world’s busiest flight routes, with South Korea’s Jeju–Seoul corridor leading global rankings
Private Welsh island with 19th-century fort listed for sale at over £3 million
Sam Altman challenges Elon Musk with plans for Neuralink rival
Australia to Recognize the State of Palestine at UN Assembly
The Collapse of the Programmer Dream: AI Experts Now the Real High-Earners
Armenia and Azerbaijan to Sign US-Brokered Framework Agreement for Nakhchivan Corridor
British Labour Government Utilizes Counter-Terrorism Tools for Social Media Monitoring Against Legitimate Critics
WhatsApp Deletes 6.8 Million Scam Accounts Amid Rising Global Fraud
Texas Residents Face Water Restrictions While AI Data Centers Consume Millions of Gallons
India Rejects U.S. Tariff Threat, Defends Russian Oil Purchases
United States Establishes Strategic Bitcoin Reserve and Digital Asset Stockpile
Thousands of Private ChatGPT Conversations Accidentally Indexed by Google
China Tightens Mineral Controls, Curtailing Critical Inputs for Western Defence Contractors
JPMorgan and Coinbase Unveil Partnership to Let Chase Cardholders Buy Crypto Directly
British Tourist Dies Following Hair Transplant in Turkey, Police Investigate
WhatsApp Users Targeted in New Scam Involving Account Takeovers
Trump Deploys Nuclear Submarines After Threats from Former Russian President Medvedev
Germany’s Economic Breakdown and the Return of Militarization: From Industrial Collapse to a New Offensive Strategy
Germany Enters Fiscal Crisis as Cabinet Approves €174 Billion in New Debt
IMF Upgrades Global Growth Forecast as Weaker Dollar Supports Outlook
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
UN's Top Court Declares Environmental Protection a Legal Obligation Under International Law
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
Japanese Prime Minister Vows to Stay After Coalition Loses Upper House Majority
President Trump Diagnosed with Chronic Venous Insufficiency After Leg Swelling
Man Dies After Being Pulled Into MRI Machine Due to Metal Chain in New York Clinic
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
Iranian President Reportedly Injured During Israeli Strike on Secret Facility
Kurdistan Workers Party Takes Symbolic Step Towards Peace in Northern Iraq
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
AI Raises Alarms Over Long-Term Job Security
Russia Formally Recognizes Taliban Government in Afghanistan
Saudi Arabia Maintains Ties with Iran Despite Israel Conflict
Mediators Edge Closer to Israel-Hamas Ceasefire Agreement
Germany Seeks Taliban Deal to Deport Afghan Migrants
Emirates Airline Expands Market Share with New $20 Million Campaign
Robots Compete in Football Tournament in China Amid Injuries
×