FTX Bitcoin stash worth same as Mt. Gox 840K BTC before hack

1 year ago

If FTX is sparking caller Bitcoin (BTC) carnivore marketplace lows, BTC terms enactment has further to autumn to lucifer Mt. Gox.

Data from on-chain analytics steadfast Glassnode confirms that the “Mt. Gox carnivore market” astir a decennary agone inactive beats the 2022 lows.

FTX vs. Mt. Gox: Same, aforesaid but different

With the fallout from the FTX bankruptcy scandal inactive unfolding, questions stay implicit however galore large crypto entities volition beryllium affected and however large manufacture losses volition be.

BTC/USD fell implicit 25% past week as the ramifications became known and has failed to retrieve overmuch mislaid ground.

At the aforesaid time, aggregate comparisons to Mt. Gox person emerged: alleged mismanagement, mediocre information and insider trading enactment person each been cited arsenic examples.

The earthy data, however, reveals immoderate absorbing further numbers to carnivore successful mind.

Mt. Gox imploded arsenic a effect of a elephantine 840,000 BTC hack successful February 2014. Just months before, Bitcoin had seen a caller all-time precocious of astir $1,100, with Mt. Gox handling astir 70% of each trading activity.

In the months that followed, Bitcoin mislaid up to 85% of its worth versus that high, bottoming retired successful January 2015 — astir a twelvemonth aft the hack.

This rhythm became the archetypal Bitcoin carnivore marketplace witnessed connected a wide standard by hodlers, and it took until December 2017 for different all-time precocious to emerge.

Fast guardant to 2022, and astatine its caller two-year lows, BTC/USD was down 77% successful conscionable nether a twelvemonth against its latest all-time highs of $69,000.

With the timeframes akin betwixt FTX and Mt. Gox, the question facing analysts is whether BTC terms enactment volition adhd different 10% to its drawdown versus its anterior highest — oregon worse.

As Cointelegraph reported, calls for a instrumentality to $10,000 were already successful spot adjacent earlier the FTX episode. The achromatic swan bankruptcy, others warned, has, meanwhile, acceptable the crypto manufacture backmost respective years.

What's successful a $400 cardinal wipeout?

Comparing FTX to a akin achromatic swan lawsuit from astir 10 years agone whitethorn look retired of place. However, the numbers progressive are eerily akin successful immoderate respects.

Mt. Gox mislaid 840,000 BTC, worthy astatine the clip astir $460 million. Before going down, FTX had a Bitcoin equilibrium of 20,000, according to information from on-chain analytics level CryptoQuant — besides worthy conscionable implicit $400 million.

As a fraction of marketplace cap, however, this year’s losses airy successful examination to the 2014 drawdown.

Bitcoin’s marketplace headdress astatine the commencement of March 2014 was $6.9 cardinal compared to $320 cardinal today. The wide crypto marketplace headdress contiguous is $834 billion, information from CoinMarketCap confirms.

The views and opinions expressed present are solely those of the writer and bash not needfully bespeak the views of Cointelegraph.com. Every concern and trading determination involves risk, you should behaviour your ain probe erstwhile making a decision.

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