Bitcoin will ignore the “black swan” of FTX just like the Mt analysis. Gox

Bitcoin (BTC) will recover from FTX’s “black swan event” just like other setbacks, Stockmoney Lizards believes.

in tweet On November 12, the famous commentator argued that the events of the week were not, in fact, new to Bitcoin.

FTX “A Real Black Swan Event”

Although down 25% in days, BTC/USD is not doomed to fail as a result of the bankruptcy affecting FTX, Alameda Research and possibly other major crypto companies.

For the Stockmoney Lizards, the crash, while surprising, is not very different from the liquidity crises that occurred earlier in Bitcoin’s history.

“We’ve already seen a real black swan event, which is the bankruptcy of FTX,” she said.

“Bitcoin’s history is fraught with such events and the market will recover from them as it has in the past.”

An accompanying chart graphic notes similar “black swan” moments from the past, extending to Mount Jokes in 2014.

Two other notable events are the Bitfinex hack in 2016 and the market crash via COVID-19 in March 2020.

Annotated BTC/USD chart. Source: Stockmoney Lizards / Twitter

As Cointelegraph reported, former FTX CEO Zane Tackett even offered to copy Bitfinex’s liquidity recovery plan from the time of its $70 million loss by creating a token. FTX subsequently filed for Chapter 11 bankruptcy in the United States.

The feedback included candid assessments of the crypto industry, with Filbfilb, co-founder of trading group Decentrader, anticipating a multi-year payback.

Changpeng Zhao, CEO of Binance, which at one point was planning to buy FTX, warned that the industry had been “down for a few years.”

BT reserves exchange near five-year low

Meanwhile, the loss of user confidence is already visible in the declining exchange balances.

Related: Losing Traders Sit on 50% of Bitcoin Supply After Bitcoin Drops $5.7K

According to data from cross-chain analytics platform CryptoQuant, the balance of BTC on major exchanges is now at its lowest level since February 2018.

The platforms tracked by CryptoQuant on November 9 and 10 ended with a drop of 35,000 and 26,000 BTC, respectively. Both days were multi-month records, yet the single-day tally from June 17th did not exceed 67,600 BTC.

Continuous monitoring of exchange outflows by industry analysts, between them CryptoQuant contributor, Maartunn.

Bitcoin exchange reserves chart. Source: CryptoQuant

More broadly, voices have been calling for social media users to withdraw money from custodial wallets.

“Bitcoin exchanges are run by people who have learned fiat finance,” Sividan Amos, author of the popular book “The Bitcoin Standard,” Wrote In part from a post on Twitter.

Gambling with depositors’ money is normal and healthy for them, because in the cash deposit system, the central bank destroys the currency to save them every time something goes wrong.

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