• Bitcoin’s large-sized transactions have seen a dramatic drawdown since the collapse of FTX.
• FTX’s collapse was attributed to the firm’s deep investment in the exchange and its use of user deposits as collateral.
• BTC and ETH continue with sideways market movement, but there is hope for recovery.
The world of cryptocurrency has recently been hit by a wave of drawdown, largely attributed to the collapse of FTX, one of the most renowned virtual currency exchanges. This collapse has caused Bitcoin’s hefty $10 million plus-sized transactions to experience a dramatic drawdown since its previous 42.8% of the total volumes.
The intelligence and data platform Glassnode revealed that the befallen virtual currency exchange, FTX led to the dramatic fall of the dominant BTC transactions worth over $10 million. It added that such transactions accounted for more than 42.8 % of the total volumes but currently represent 19% of all on-chain volume.
FTX was owned by Sam Bankman-Fried (SBF), who also inaugurated the Alameda firm. Its drawdown commenced on Nov. 2 after reports suggested that Alameda had deeply invested in FTX, keeping the two companies and the owner at the center of investigations and causing a further crypto meltdown. SBF was later indicated to be utilizing users‘ deposits in the exchange as collateral, causing the company to file for chapter 11 bankruptcy. Additionally, the organization experienced a massive hack that severely impacted it.
BTC and ETH continue with sideways market movement, but there is hope for recovery. Many investors remain optimistic that the crypto market will return to its pre-collapse level. Analysts have predicted that the crypto markets will not only recover but will also become stronger in the long run.
Nevertheless, the fall of FTX has caused many investors to lose their confidence in the crypto world. It is yet to be seen whether the crypto markets will be able to recover from this setback or if they will continue to remain in a downward spiral. In the meantime, investors should remain vigilant and cautious when investing in the crypto markets.