Bitcoin will survive the FTX “black swan” like it did Mt. Gox

Trading team Stockmoney Lizards is certain that BTC will bounce back from the FTX black swan incident the same way it has from past setbacks.

The well-known expert stated that the events of the previous week were nothing new for Bitcoin in a tweet on November 12.

The FTX was “a true black swan occurrence.”

Despite losing 25% in a matter of days, the insolvencies affecting FTX, Alameda Research, and perhaps other significant crypto firms do not spell the end for BTC/USD.

Stockmoney Lizards thinks that despite its brutal, fast nature, the unraveling is not significantly different from past liquidity crises in Bitcoin’s history.

The FTX bankruptcy, it claimed, was a “true black swan event.” It added that BTC’s history is filled with similar occurrences and that the market will bounce back just as it has in the past. An accompanying chart highlighted comparable “black swan” events in the past, dating back to the 2014 Mt. Gox breach.

The 2016 breach of the exchange Bitfinex and the COVID-19 cross-market crash in March 2020 were two other noteworthy occurrences.

According to reports, former FTX CEO Zane Tackett even offered to create a token in order to mimic Bitfinex’s liquidity recovery strategy from the time of its $70 million loss. Following that, FTX declared bankruptcy under Chapter 11 in the US.

Honest assessments of the cryptocurrency market have been made in response, with Filbfilb, co-founder of the trading platform DecenTrader, predicting a multi-year recovery phase.

The CEO of Binance, which had plans to acquire FTX in the past, Changpeng Zhao, has expressed concern that the industry has “gone back a few years.”

Exchange reserves are almost at a five-year low

Exchange balances are already dropping as a result of the decline in user confidence.

Data from on-chain monitoring company CryptoQuant shows that the BTC balances of the biggest exchanges are currently at their lowest levels since February 2018.

On November 9 and 10, the platforms that CryptoQuant was watching had losses of 35,000 and 26,000 BTC, respectively. Although both days set multi-month records, they fell short of the single-day total from June 17 (67,600 BTC).

Exchange outflows are still being watched by market observers, including Maartunn, a contributor to CryptoQuant.
According to reports, former FTX CEO Zane Tackett even offered to create a token in order to mimic Bitfinex’s liquidity recovery strategy from the time of its $70 million loss. Following that, FTX declared bankruptcy under Chapter 11 in the US.

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