The well-known industry insider was quoted as saying that the happenings in Bitcoin the week before were nothing out of the ordinary.
"A Genuine Incident Involving a Black Swan"
Bitcoin may have suffered a 25% loss in a couple of days, but the insolvencies of Alameda Research and FTX, along with those of maybe other important crypto enterprises, do not signal the end of the cryptocurrency. According to the research conducted by Stockmoney Lizards, the unraveling, despite being rapid, is comparable to earlier instances of liquidity issues that occurred in Bitcoin's history.
The financial crisis that FTX was experiencing was described as a "genuine black swan incident" by the trading company. However, events of this nature have occurred frequently throughout the history of Bitcoin, and it is expected that the market will recover as it has previously.
In the graphic that is adjacent to this one, comparable "black swan" incidents stretching all the way back to the Mt. Gox hack of 2013 are noted. Two more important events that took place were the hacking of the cryptocurrency exchange company Bitfinex in 2016 and the crash of the COVID-19 inter-market in 2020.
The former CEO of FTX, Zane Tackett, even offered to design a coin that would function similarly to the liquidity contingency plan that Bitfinex had in place during the time of its $70,000,000 loss. Despite this, FTX filed for bankruptcy in the United States under the Chapter 11 code.
In response to these events, honest assessments of the cryptocurrency market have been made, with the co-founder of the trading platform Decentrader, Filbfilb, forecasting that the industry will rebound over the course of a number of years.
Changpeng Zhao, the CEO of Binance, which at one point intended to acquire FTX, has expressed concern that the market has "gone several years back."
Bitcoin reserves held by exchanges are hovering dangerously close to a five-year low.
Because customers have less faith in the market, exchange reserves have already begun to decrease. According to information obtained from the on-chain monitoring business CryptoQuant, the Bitcoin balances of the most prominent exchanges are currently at their lowest level since February of 2018.
The websites that CryptoQuant was monitoring saw losses of 35,000 Bitcoin and 26,000 Bitcoin, respectively, on November 9 and 10. Despite the fact that both dates established new intermonth records, they were unable to match the one-day total of June 17 (67,600 Bitcoin).
Maartunn, an active contributor to CryptoQuant, is one of the market monitors who is continuing to monitor the outflows of exchanges. In general, a number of crypto celebrities have been encouraging users to withdraw money from their wallets and put it into fiat currency via social media.
On Twitter, one of the authors of the popular book "The Bitcoin Standard," Saifedean Ammous, declared in part that "those who learned fiat finance are the ones who govern Bitcoin trades."
Since the central bank would always print additional money to offset investors' losses under the fiat system, wagering with investors' money is perfectly acceptable and even beneficial for the investors themselves.
