According to trading outfit Stockmoney Lizards, Bitcoin will bounce back from the FTX "black swan event" just like it has from other setbacks.
The well-known expert stated that the events of the previous week were nothing new for Bitcoin in a tweet on November 12.
FTX "Really a 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.
Although quick, the unraveling is similar to prior liquidity crises in Bitcoin's history for Stockmoney Lizards.
The bankruptcy of FTX was a "true black swan occurrence," it declared.
“The history of BTC is lined with such events and the market will recover from it as it did in the past.”
Similar "black swan" events dating back to the 2014 Mt. Gox hack were noted in an accompanying chart.
The 2016 hack of the exchange Bitfinex and the COVID-19 cross-market crash in March 2020 were two additional noteworthy occurrences.
Zane Tackett, a former CEO of FTX, even offered to create a token in order to replicate 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 process.
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 BTC Reserves Close to 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.
More generally, people have been urging social media users to take money out of their wallets.
Author of the well-known book "The Bitcoin Standard" Saifedean Ammous stated, in part, on Twitter, "Bitcoin exchanges are controlled by people who learnt fiat finance."
"Gambling with depositors' money is normal & healthy for them, because in the fiat system the central bank destroys the currency to bail them out every time it goes wrong."
