FTX Collapse Good for Bitcoin Long-Term, Santiment Analysis
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Answer FTX Collapse Good for Bitcoin Long-Term, Santiment Analysis
The collapse of the FTX cryptocurrency exchange that shook the entire cryptocurrency market could be the catalyst for changing the market situation according to an analysis by Santiment.
In a tweet, social metrics analysis platform, crypto market, and blockchain transactions told Santiment that the Bitcoin cryptocurrency thrives when trading is not the driver of social engagement around the crypto-asset class.
Santiment supports this analysis by pointing to historical data that shows that Bitcoin’s (BTC) social dominance, along with its price, declines when there are booms in the exchange’s digital token discussion.
In 2022, this was the case when Crypto.com’s CRO, Binance’s BNB, Kucoin’s KCS, Huobi HT and FTT dominated social conversations.Read:The Bahamas Securities Commission controls $3.5 billion worth of FTX clients’ assets
With the recent collapse of FTX and its cryptocurrency FTT, bitcoin is likely to return to the center of attention which is also likely to drive up cryptocurrency prices.
Cryptocurrencies generally thrive when the currencies of the trading platforms are not a focal point.
Santiment is not the only company that sees the collapse of FTX as beneficial to Bitcoin in the long term. According to Murat Mahmudov, a prominent cryptocurrency trader and market analyst, the collapse of FTX may actually shorten the ongoing bear market.
Nayib Bukele, the president of El Salvador who recently revealed that El Salvador will buy 1 bitcoin per day, saw the FTX fiasco as reaffirming the need for bitcoin.
Bukele stated that Bitcoin is the opposite of centralized entity currencies such as FTX that can be used to perpetuate Ponzi schemes.
The collapse of FTX affects the entire market:
The FTX saga was taking more victims apart from the direct users of the platform.
Many companies associated with FTX and Alameda have come out to announce their potential losses due to the huge hole left by FTX which is worth more than $10 billion.Read:Coinbase crashes as Bitcoin drops more than 10 percent
Will bankrupt Celsius clients get their money back?
Elon Musk comments on the FTX founder’s spending of more than a billion dollars to support the Democrats in the elections!
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