- BTC hit its 1-year-low of $15,682 owing to FTX’s demise.
- The bankrupted exchange, FTX, held 20,000 BTC before its collapse.
- Bitcoin was pushed into the longest crypto winter after Mt Gox’s collapse.
Tragic price crashes in the aftermath of a collapse or crypto heist victimize Bitcoin. This year’s cascade of collapses – Terra catastrophe, Celsius bankruptcy, and now FTX collapse, continue to weigh on the worth of the global crypto market. Bitcoin and the whole ecosystem of altcoins crashed down to its bottom.
Significantly, Bitcoin fell to its 1-year-low of $15,682 as per CMC. Amid the prevailing panic, Will Clemente, a famous crypto analyst, attempted to compare Bitcoin’s market sentiment during the FTX collapse to that of the Mt Gox 2014 Collapse. The fatal episode of the Tokyo-based exchange is regarded as the biggest Bitcoin heist in the history of the crypto sector.
When Mt. Gox collapsed in 2013 it was 70% of global trading volume. FTX was only 10%. FTX is worse on an absolute basis, but on a relative basis, Mt. Gox was much worse. If Bitcoin can survive that it absolutely can survive this.
— Will Clemente (@WClementeIII) November 21, 2022
Bitcoin of Mt Gox Vs FTX Era
Mt Gox held nearly 950,000 BTC before going down. It accounted for 70% of the trading volume of the global crypto market. The exchange was vulnerable to bitcoin thefts due to several hacks. Over 850k Bitcoin were stolen from the platform during the heist. Following it, in February 2014, Mt Gox filed for bankruptcy.
The impact of this dreadful event lingered in the crypto market. During this collapse, Bitcoin fell from its first all-time high (ATH) of $1,100 by over 85%. BTC traded nearly in the range of $540. Subsequently, the dominant crypto entered one of the longest bear markets from late 2013 to early 2017.
On the other hand, FTX, once the second-largest crypto exchange by trading volume, fell to its deathbed wiping out hundreds of billions from the crypto market. Before the collapse, FTX held nearly 20,000 BTC. It filed bankruptcy in the second week of November and caused BTC to plummet nearly 26%. Alarmingly, Bitcoin failed to test its lows. At the time of writing, according to CoinMarketCap, Bitcoin traded at $16,120, down by 3.48%.
