Beautiful Virgin Islands

Tuesday, Jul 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

Beautiful Virgin Islands
0:00
0:00
Close
UK Government Considers Dropping Demand for Apple Encryption Backdoor
Severe Flooding in South Korea Claims Lives Amid Ongoing Rescue Operations
Japanese Man Discovers Family Connection Through DNA Testing After Decades of Separation
Russia Signals Openness to Ukraine Peace Talks Amid Escalating Drone Warfare
Switzerland Implements Ban on Mammography Screening
Japanese Prime Minister Vows to Stay After Coalition Loses Upper House Majority
Pogacar Extends Dominance with Stage Fifteen Triumph at Tour de France
CEO Resigns Amid Controversy Over Relationship with HR Executive
Man Dies After Being Pulled Into MRI Machine Due to Metal Chain in New York Clinic
NVIDIA Achieves $4 Trillion Valuation Amid AI Demand
US Revokes Visas of Brazilian Corrupted Judges Amid Fake Bolsonaro Investigation
U.S. Congress Approves Rescissions Act Cutting Federal Funding for NPR and PBS
North Korea Restricts Foreign Tourist Access to New Seaside Resort
Brazil's Supreme Court Imposes Radical Restrictions on Former President Bolsonaro
Centrist Criticism of von der Leyen Resurfaces as she Survives EU Confidence Vote
Judge Criticizes DOJ Over Secrecy in Dropping Charges Against Gang Leader
Apple Closes $16.5 Billion Tax Dispute With Ireland
Von der Leyen Faces Setback Over €2 Trillion EU Budget Proposal
UK and Germany Collaborate on Global Military Equipment Sales
Trump Plans Over 10% Tariffs on African and Caribbean Nations
Flying Taxi CEO Reclaims Billionaire Status After Stock Surge
Epstein Files Deepen Republican Party Divide
Zuckerberg Faces $8 Billion Privacy Lawsuit From Meta Shareholders
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
SpaceX Nears $400 Billion Valuation With New Share Sale
Microsoft, US Lab to Use AI for Faster Nuclear Plant Licensing
Trump Walks Back Talk of Firing Fed Chair Jerome Powell
Zelensky Reshuffles Cabinet to Win Support at Home and in Washington
"Can You Hit Moscow?" Trump Asked Zelensky To Make Putin "Feel The Pain"
Irish Tech Worker Detained 100 days by US Authorities for Overstaying Visa
Dimon Warns on Fed Independence as Trump Administration Eyes Powell’s Succession
Church of England Removes 1991 Sexuality Guidelines from Clergy Selection
Superman Franchise Achieves Success with Latest Release
Hungary's Viktor Orban Rejects Agreements on Illegal Migration
Jeff Bezos Considers Purchasing Condé Nast as a Wedding Gift
Ghislaine Maxwell Says She’s Ready to Testify Before Congress on Epstein’s Criminal Empire
Bal des Pompiers: A Celebration of Community and Firefighter Culture in France
FBI Chief Kash Patel Denies Resignation Speculations Amid Epstein List Controversy
Air India Pilot’s Mental Health Records Under Scrutiny
Google Secures Windsurf AI Coding Team in $2.4 Billion Licence Deal
Jamie Dimon Warns Europe Is Losing Global Competitiveness and Flags Market Complacency
South African Police Minister Suspended Amid Organised Crime Allegations
Nvidia CEO Claims Chinese Military Reluctance to Use US AI Technology
Hong Kong Advances Digital Asset Strategy to Address Economic Challenges
Australia Rules Out Pre‑commitment of Troops, Reinforces Defence Posture Amid US‑China Tensions
Martha Wells Says Humanity Still Far from True Artificial Intelligence
Nvidia Becomes World’s First Four‑Trillion‑Dollar Company Amid AI Boom
U.S. Resumes Deportations to Third Countries After Supreme Court Ruling
Excavation Begins at Site of Mass Grave for Children at Former Irish Institution
Iranian President Reportedly Injured During Israeli Strike on Secret Facility
×