Regarding the FTX aftermath and Bitcoin’s endurance, there may not be anything new to be concerned about.
In a tweet on November 12, the prominent analyst stated that Bitcoin’s recent occurrences were nothing new.
BTC/USD is not doomed despite dropping 25% in days due to the insolvencies of FTX, Alameda Research, and maybe other large crypto firms.
For Stockmoney Lizards, the unravelling, while abrupt, is not notable apart from past liquidity crises in the history of Bitcoin.
The FTX bankruptcy was a true black swan occurrence, the report said. “Bitcoin’s history is littered with such incidents, and the market will rebound as it has in the past.”
Similar black swan events have occurred in the past, dating back to the 2014 Mt. Gox breach, according to the report.
The 2016 attack on the exchange Bitfinex and the March 2020 COVID-19 cross-market disaster were also noteworthy.
According to Cointelegraph, former FTX CEO Zane Tackett even offered to create a coin similar to Bitfinex’s liquidity recovery strategy at the time of its $70 million loss. In the United States, FTX later filed for Chapter 11 bankruptcy.
There have been honest assessments of the crypto business, with Filbfilb, co-founder of the trading suite DecenTrader, predicting a multi-year recovery.
Changpeng Zhao, chief executive officer of Binance, which at one time intended to acquire FTX, has warned that the sector has been “put back a few years.” In the meanwhile, the loss of customer trust is already manifesting itself in diminishing currency reserves.
According to statistics from the on-chain analytics portal CryptoQuant, the BTC balances of key exchanges are now at their lowest level since February 2018.
The platforms monitored by CryptoQuant were down 35,000 BTC on November 9 and 26,000 BTC on November 10. Both days were multi-month records but did not exceed June 17’s single-day total of 67,600 BTC.
Analysts in the sector, like CryptoQuant contributor Maartunn, continue to track outflows from exchanges.