Bitboy declares that crypto is not dead and will not be, no matter what happens
Contrary to popular belief that this could be crypto’s end game following recent events in the space, top YouTuber ben armstrongAlso known as BitBoy, declared that crypto is not dead and will not be, no matter what happens.
He cites the collapse of Mt. Gox, one of the largest Bitcoin exchanges then, saying that the market survived and thrived afterward.
In February 2014, the Mt Gox exchange collapsed due to a massive 840,000 BTC hack. Just a few months ago, bitcoin reached a new record high of around $1,100, with Mt Gox controlling around 90% of all transactions.
Following the attack, Bitcoin had a subsequent decline in value of up to 85%, bottoming out in January 2015, almost a full year later.
For the first time, traders saw a major bitcoin bear market, and it wasn’t until December 2017 that another all-time high was reached. Fast forward to 2022, and bitcoin has lost 76% of its value in a year, well below its all-time high of $69,000 in November 2021.
FTX contagion spreads
In the past week, institutional lender Genesis Global Capital suspended customer redemptions, citing the abrupt bankruptcy of the cryptocurrency exchange FTX.
The Grayscale Bitcoin Trust, the world’s largest bitcoin fund, plunged following the news, and the price of bitcoin plummeted as a result.
Significant Bitcoin outflows were also observed on the cryptocurrency exchange Gemini over the previous week as industry-wide concerns about insolvency grew. Genesis remains in dire straits, as it needs a $1 billion liquidity injection by Monday.
FTX filed for bankruptcy protection in the highest-profile crypto blowup to date after massive withdrawals and rival exchange Binance abandoning its rescue deal.
