Huge altcoins gains. Cryptocurrencies rebound from 2 year lows ahead of inflation CPI reading 📈

This night for cryptocurrencies was certainly not a successful one. On the wave of comments from Binance, which sharply backed out of the FTX acquisition, the market began a cascading sell-off. Bitcoin settled in the neighborhood of $15,500, and Ethereum briefly cost $1,050.  Now the cryptocurrencies are trying to bounce back from new one-year lows and the real euphoria has entered the altcoin market, which was sold off in recent days. What do we know new?

• Binance has pulled out of the deal due to a scathing review of FTX's financial position. The reason for the Chanpenga Zhao exchange's abandonment of the FTX acquisition is the investigation launched by US regulators as well as the size of the exchange's financial hole;
• Sam-Bankman Fried has relayed that the scale of the current budget hole could be as large as $8 billion and has asked investors for $4 billion in financing. According to SBF, in the absence of a cash injection, the FTX exchange will go bankrupt;
• Anonymous sources report FTX controversy in the political world, on the wave of midterms elections in the US. Bankman-Fried himself was a declared Democrat and regularly contributed significant sums funding the party. Among other things, he contributed a record $800,000 in May of this year. Republican partisans accuse the Democrats of profiting 'by fraud;
• A report by JP Morgan analysts points to Bitcoin's decline to the vicinity of $13,000 and assumes a 'smaller-than-previous' wave of bankruptcies in the cryptocurrency industry. Analysts expect that this time the issue will not spill over to more entities although the 'deleveraging of the market' may take several weeks;
• The U.S. Department of Justice, the Securities and Exchange Commission (SEC) and the Federal Trade Commission (CFTC) have opened an investigation into the collapsing exchange. The market fears aggressive intervention by regulators and another wave of bankruptcies of mismanaged or fraudulent decentralized entities, according to Buffett's saying: "When the tide comes in, it turns out who swam naked."
• There has been some still unconfirmed but high-profile speculation regarding El Salvador supposedly storing Bitcoins on the FTX exchange.  Cointelegraph reports ALAC El Salvador's non-governmental anti-corruption bureau has been rebuffed by state development bank BANDESAL, which conducts BTC purchases and sales in the country. A request to disclose the behind-the-scenes of El Salvador's adoption of Bitcoin was rejected 'for confidentiality reasons'. The bank created a $150 million trust fund to guarantee convertibility into dollars for citizens and merchants;
• Edward Snowden referred to the FTX bankruptcy and pointed to the problem lying on the side of "trust in fiduciary, cryptocurrency exchanges.
• Double-digit gains are being recorded by smaller cryptocurrencies including Algorand, Dogecoin, Graph, Kyber and Kiloshib. Bitcoin has gained less than 4% since it was traded at $15,700.

Conspiracy theory 

Head of research and analysis at CoinMetrics, Lucas Nuzzi pointed to the likelihood of Bankman-Frieda hiding the insolvency of the Alameda Research fund. The fund was expected to become insolvent along with other entities associated with the bankrupt Luna. According to the speculation, however, SBF decided to hide this fact, knowing that an automatic contract programmed back during the 2019 FTX ICO would be triggered on September 28. As a result of the contract, 172 million FTT tokens went on the exchange on September 28, and on-chain indicators then recorded a more than 120% surge in token supply. By then, SBF had built an image as the 'savior of cryptocurrencies,' offering to take over failed entities like Celsius and Voyager Digital and thoroughly help rebuild trust with the industry. The exchange's improved image partially limited the fall in FTX token prices, and the exchange itself was positioned by many as a major rival to Binance.  SBF was not afraid of centralization and even asked regulators to take a clear, restrictive stance that would eliminate the risk of another wave of fraud and bankruptcies. Tokens from the ICO were to be used by Bankman-Fried to bail out Alameda, which was drowning in losses. Kyber chart, M15 interval. The cryptocurrency is up more than 43% today. The SMA200 (red) and SMA50 (black) averages are approaching an intersection called the 'golden cross', which could propel the bulls. The main resistance will be the levels at $0.85. Source: xStation5Bitcoin, W1 interval. The price of Bitcoin has dived so deeply below the 200-session moving average (red) for the first time in a bull market. The relative strength index is clearly weakening. The SMA200 and SMA50 (black) averages, if they maintain the current pattern of movement, will intersect leading to the formation of the so-called 'death cross', which usually heralds a weakening of sentiment. Bulls are hoping that the averages will turn around as bitcoin begins to rebound and not intersect. The death cross formation on the weekly interval would be the first such technical analysis phenomenon in the history of Bitcoin trading. Source: xStation5