Santiment: FTX Collapse to Benefit Bitcoin in the Long Term

The FTX exchange collapse rocking the whole crypto market might usually be the driver to turn the marketplace around, according to an analysis by Santiment.

In a tweet, the crypto market on-chain and social metrics intelligence platform stated crypto prospers when exchanges are not the chauffeurs of social engagement around the possession class.

Santiment backs this claim by indicating historic information that reveals that Bitcoin’s (BTC) social supremacy, in addition to its cost, sinks when there have actually been spikes in a conversation of exchange tokens. In 2022, this held true when Crypto.com token CRO, Binance’s BNB, Kucoin’s KCS, Huobi’s HT, and FTX’s FTT tokens controlled social chatter.

With the current collapse of FTX and its FTT token, BTC is most likely to go back to the centre of attention which will likewise likely lead to a cost rally for the benchmark cryptocurrency.

“Crypto typically prospers when exchanges are NOT a centerpiece. The most impactful exchange collapse ever will have enduring shockwaves. However as revealed, the secret for a turn-around will likely be focus moving far from exchange tokens, and back to Bitcoin,” the analysis stated.

Santiment is not the only expert highlighting the positives for Bitcoin and the crypto market that are most likely to emerge from the FTX collapse. According to popular crypto trader and market expert Murad Mahmudov, the implosion of FTX may in fact reduce the continuous bearish market.

Nayib Bukele, the president of El Salvador who just recently exposed that the nation would be purchasing 1 BTC daily, believed that the FTX mess reemphasizes the requirement for Bitcoin. He mentioned that Bitcoin is the reverse of central entities like FTX that can be utilized to perpetuate Ponzi Schemes.

FTX collapse still spreading out contagion in the market

The FTX legend has actually been declaring a lot more victims apart from direct users of the exchange. Numerous FTX and Alameda-related entities have actually been coming out to state their prospective losses due to the over $10 billion hole in the exchange’s books.

ZyCrypto reports that John Ray III, who took control of as FTX’s CEO after the exchange declared personal bankruptcy, has actually slammed Sam Bankman-Fried’s management as the worst he has actually seen in his over 40-year profession as a personal bankruptcy expert. In a court filing, Ray kept in mind lapses in oversight, security, and business governance to have actually resulted in the crash.