Bitcoin (BTC) will recover from the FTX “black swan event” just like other setbacks, trading team Stockmoney Lizards believes.
In a tweet on Nov. 12, the popular commentator argued that the week’s events were actually nothing new for Bitcoin.
FTX “a real black swan event”
Despite falling 25% in days, BTC/USD is not doomed as a result of the insolvencies impacting FTX, Alameda Research and possibly other major crypto companies.
For Stockmoney Lizards, the unravelling, while sudden, is not hugely different to liquidity crises from earlier in Bitcoin’s history.
“We have indeed seen a real black swan event, the FTX bankruptcy,” it said.
“The history of BTC is lined with such events and the market will recover from it as it did in the past.”
An accompanying chart flagged similar “black swan” moments from the past, stretching back to the Mt. Gox hack in 2014.
Two other notable events were the hack of exchange Bitfinex in 2016 and the March 2020 COVID-19 cross-market crash.
As Cointelegraph reported, ex-FTX executive 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.
Reactions have included frank appraisals of the crypto industry, with Filbfilb, co-founder of trading suite Decentrader, forecasting a multi-year recovery process.
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