Bitcoin (BTC) On Track For Biggest Monthly Loss Since June After Shocking FTX Collapse

Following the dramatic and tragic FTX crash in November, Bitcoin may be on track to record its worst monthly loss since June. In November, it is now down 18%, based on data from TradingView.

To put things into perspective, BTC ended August and September down 13.98% and 3.10%, respectively, but it ended October higher with modest gains of 5.48%.

After the Terra crash in May and when the price first dropped below $20K in June, there were significant sell-offs of bitcoin with losses of 15.57% and 37.12%, respectively. Bahamas-based FTX filed for bankruptcy in November. The following FTX breach and the revelations that followed sent shockwaves through the whole sector.

The FTX catastrophe, which resulted in investors going into the red already, led to one of the largest incidents of capitulation in Bitcoin history. The market is still a little unresponsive and likely needs some time to fully comprehend the current upheaval.

With a realized loss of $10.16 billion over seven days in November, it was the fourth-largest capitulation event in history. According to Glassnode, this is 2.2 times more than in March 2020 and four times bigger than the peak in December 2018.

The Bitcoin market appears to be stabilizing now that prices are trading within a narrow range and staying at just around $16,000 after a few volatile weeks. As the dust settles following FTX’s implosion, the general response of Bitcoin owners is starting to become more obvious. BTC was up 2.45% from the day before, trading at $16,815 at the time of writing.

Bitcoin In The Final Stages Of Becoming Irrelevant 

A recently published research by the ECB claims that Bitcoin is on the verge of extinction because of all of its flaws. According to the paper, price manipulation was responsible for Bitcoin’s current stability, and its worth only derives from speculative activity.

The European Central Bank believes that boosting Bitcoin investments will do more harm than good in the long run, despite its promotion as a ground-breaking payment system and financial asset.

 The statement actually went on to emphasize that Bitcoin’s decline into irrelevance started long before the market turbulence caused by FTX. Ulrich Bindseil, the director general of the ECB, and Jürgen Schaff, an advisor, both noted issues influencing the regulation of cryptocurrencies in the study.

They said that the main obstacle to strict rules surrounding Bitcoin was an original misunderstanding. The team made the observation that a promising technology does not always guarantee value addition or disruption.

In response to the ECB report, the cryptocurrency community on Twitter made fun of a 2021 video in which ECB President Christian Lagarde made a bold assertion that inflation would decline in 2022.

Since laying out moves toward a digital euro during last year’s last quarter, the ECB has continued to be a vociferous cryptocurrency spectator. The bank’s most recent statement, which outlines Bitcoin’s value as based only on speculation, appears to disqualify it as an investment asset.