The Stockmoney Lizards trading team believes that the FTX “black swan” will not affect the queen of cryptocurrencies. Bitcoin will indeed be able to overcome this new crisis linked to the collapse of Sam Bankman-Fried’s crypto exchange, in the same way that it was able to resist the cyclone Mt.Gox.
Bitcoin, an immortal currency?
” We have indeed witnessed a real black swan event, the bankruptcy of FTX. The history of bitcoin is punctuated by such events and the market will recover from them as it has in the past. »
The status of dean of cryptocurrencies automatically falls to Bitcoin since its elders like Reusable Proof-of-Work (RPOW) have all disappeared. The cryptocurrency created by Satoshi Nakamoto, now 13, has experienced several crises, including events classified as “black swans”. Stockmoney Lizard has identified 4 of them, namely:
- Mt.Gox (2011): drop to 96% after a large-scale hacking of the platform;
- Bitfinex (2016): 86% drop in BTC value after another hack story;
- Covid-19 (2020): -84%;
- FTX (2022): -77%.
In other words, bitcoin is not at its first black swan, if we can consider the case of FTX as well. Skeptics will wait in vain for its dissolution, if that is their expectation after recent events in the cryptosphere.
Granted, bitcoin fell 25% in the days following FTX’s collapse, but it’s not a victim of it. Other companies attached to the SBF empire are unfortunately coming to an unfortunate end.
Hollow bitcoin exchanges
Between November 9 and 10, on-chain analytics platform CryptoQuant tracked bitcoin transactions from major crypto exchanges. The data collected highlighted a respective drop of 35,000 and 26,000 BTC. In total, this is 61,000 BTC. Which is close to the record for the day of June 17, according to Cointelegraph.
The reason for these movements? A vast campaign launched on social networks to encourage bitcoin holders to withdraw their funds from custodial wallets. Elon Musk, criticizing the ex-CEO of FTX yesterday, recommended the use of cold wallets.
On Twitter, Saifedean Ammous, author of the popular book “The Bitcoin Standard”, posted this: “ Bitcoin exchanges are run by people who have learned traditional finance. Playing with depositors money is normal and healthy for them because in the fiat system the central bank destroys the currency to bail them out every time it goes wrong “. Mt.Gox, Bitfnex and FTX, may be black swans, but the lessons to be learned are crucial.
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