Bitcoin will recover from FTX black swan

The trading team Stockmoney Lizards is convinced that Bitcoin will recover from the decline driven by a black swan event — FTX collapse. 

The popular blogger shared his thoughts on Twitter. In his opinion, Bitcoin has already faced such events, like the recent one.

Despite the fact that bitcoin saw a decline of 25% in days, the BTCUSD pair is not doomed to slip further on the news about the bankruptcy of FTX and Alameda Research.

According to Stockmoney Lizards, this sudden sequence of events is almost no different from the cryptocurrency exchange liquidity crises Bitcoin has faced before.

The blogger highlighted that investors witnessed a real black swan — the FTX crash. Bitcoin history is full of the same events. According to him, the cryptocurrency market should recover as it happened before. 

Two other highlights in Bitcoin’s history are the hack of the Hong-Kong based crypto-exchange Bitfinex in 2016 and the intermarket crash in March 2020 resulted from the coronavirus pandemic.

Changpeng Zhao, CEO of Binance, the world's largest cryptocurrency exchange, which was going to buy its competitor FTX, said that the market has been “set back a few years.”

The loss of user confidence has already influenced the exchange's balance.

Data from analytics platform CryptoQuant showed that the Bitcoin amount held by major exchanges reached its lowest level of just under $2,4 million since February 2018.