Bitcoin Will Pull Through The “Black Swan” Of FTX Similar To Mt. Gox – Research
When it concerns Bitcoin’s durability and the fallout from the FTX, there could not be many reasons for panic. According to trading outfit Stockmoney Lizards, Bitcoin will recover from the “black swan catastrophe” of FTX just like other similar ones.
The famous research analyst stated that the previous week’s events were not out of the ordinary for Bitcoin.
“An Ideal Black Swan Incident”
Having lost more than 24% within a few days, the liquidity issues surrounding Alameda Research, FTX, and other leading crypto companies can’t bring BTC to its knees. Although quick, the unraveling is similar to prior liquidity problems in Bitcoin’s background, according to insights by Stockmoney Lizards.
“The financial crisis of FTX was an “ideal black swan incident,” the trading firm wrote. However, such occurrences are common in Bitcoin history, and the marketplace will recover like before.
Similar instances from as far as the 2013 Mt. Gox scandal were noted in an adjoining chart. The exploit on Bitfinex (a popular crypto exchange) and the 2020 pandemic-led market crash were notable occurrences mentioned in the report.
Zane Tackett —- Ex-FTX CEO even volunteered to develop a coin to mimic Bitfinex’s liquidity contingency plan from when it lost $70,000,000. Nevertheless, FTX filed a Chapter 11 bankruptcy in the US.
A detailed analysis of the cryptocurrency market by the trading platform Decentrader’s co-founder —- Filbfilb, predicts a number of years for recovery to be complete.
Binance’s CEO, which had plans to acquire FTX in the past expressed his worries that the market has retrogressed by a few years.
Reserves Of Exchange BTC Are At Their Lowest In Five Years
Exchange reserves are declining as user confidence drops. Data sourced through Blockchain analytics firm CryptoQuant reveals that the BTC balances of the leading exchanges are at their barest minimum in four years right now.
Last Thursday and Friday, two CryptoQuant-monitored websites recorded losses of 26 thousand Bitcoin and 35 thousand Bitcoin each. While both dates were the highest in months, they’re still low compared to the 67,600 Bitcoin loss within 24 hours on June 17.
The amount of BTC leaving exchanges is still under close monitoring by market observers, notably Maartunn, one of CryptoQuant’s active contributors. Generally, some crypto influencers have been urging people via social media to take money out of their wallets.
The well-known book titled “The Bitcoin Standard” by Saifedean Ammous stated, in part, on Twitter, “people who learned fiat finance are the ones who control Bitcoin trades.
Therefore, betting with investors’ money is acceptable and desirable for them since the central bank always prints more money to cover their losses under the fiat system.”
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