Overview

Click to expand overview
The crash was deemed necessary, as the asset is currently on a recovery route. Prominent analyst, Ali Martinez took to Twitter and noted that a whopping 260,000 BTC Traders responded toFTX'sshocking collapse by pulling their BTC from custodial exchanges. Notably, the total amount of Bitcoin held by all exchanges dropped to 2.07 million BTC on Nov. 17 from 2.29 million BTC at the beginning of the month. United States-based exchanges saw the biggest outflows, in Ver más Bulls say that FTX's sudden collapse could be bullish for bitcoin's price because it's seen as a decentralized asset that doesn't rely on intermediary companies like FTX’s implosion sent shock waves through the crypto and financial communities. Numerous funds and crypto start-ups were entangled with FTX, which extended The cryptocurrency market is starting to bounce back a year after the collapse of crypto exchange FTX and other big players in 2025 crushed prices, tarnished the industry

Was the FTX Collapse Bullish for Bitcoin? A Counterintuitive Look

The implosion of FTX sent shock waves through the crypto and financial communities. Numerous funds and crypto start-ups were entangled with FTX, which extended the cryptocurrency market's pain. However, could the shocking FTX collapse actually be *bullish* for Bitcoin in the long run?

Bulls say that FTX's sudden collapse could be bullish for bitcoin's price because it's seen as a decentralized asset that doesn't rely on intermediary companies. The crash was deemed necessary, as the asset is currently on a recovery route.

Self-Custody Surge: A Vote of Confidence in Bitcoin

The FTX collapse highlighted the risks associated with centralized crypto exchanges. This led to a significant increase in Bitcoin holders moving their funds off exchanges and into self-custody solutions. Prominent analyst, Ali Martinez took to Twitter and noted that a whopping 260,000 BTC Traders responded to FTX's shocking collapse by pulling their BTC from custodial exchanges.

Notably, the total amount of Bitcoin held by all exchanges dropped to 2.07 million BTC on Nov. 17 from 2.29 million BTC at the beginning of the month. United States-based exchanges saw the biggest outflows. Ver más.

Decentralization in Action: A Strengthened Narrative

The FTX saga underscored the inherent vulnerabilities of centralized systems, precisely what Bitcoin was designed to avoid. The events served as a real-world example of why self-custody and decentralized financial systems are crucial. By removing intermediaries, Bitcoin holders gain complete control over their assets, mitigating the risks of exchange mismanagement and potential collapses.

The cryptocurrency market is starting to bounce back a year after the collapse of crypto exchange FTX and other big players in 2022 crushed prices, tarnished the industry. This recovery suggests a renewed focus on the core principles of decentralization that Bitcoin embodies.

Looking Ahead: A More Resilient Bitcoin Ecosystem

While the immediate aftermath of the FTX collapse was undoubtedly painful, the long-term implications may prove beneficial for Bitcoin. The renewed emphasis on self-custody, decentralization, and transparency could lead to a more resilient and robust Bitcoin ecosystem, ultimately supporting its long-term value and adoption.

Top Sources

Related Articles