Why Bitcoin Outpaced Altcoins After the FTX Collapse
Share:
Post-FTX (2022) liquidation deals allowed hedge funds to earn 70–80% while hedging SOL risk, moving large supply off‑chain and reshaping capital flows in crypto markets. Hidden off‑chain sales created synthetic altcoin selling that pressured retail buyers and contributed to altcoins’ underperformance versus Bitcoin. Bitcoin’s transparent on‑chain markets supported price discovery and strengthened BTC dominance, highlighting fragmentation between transparent BTC liquidity and opaque CEX/DeFi settlement activity.
Predictions Markets
See what traders are focused on
- Post-FTX deals enabled hedge funds to earn 70–80% returns while hedging SOL risk.
- Hidden off-chain sales created synthetic altcoin selling, pressuring retail buyers.
- Bitcoin’s transparent markets supported price discovery, driving dominance and strength.
Crypto markets continue to spark debate after a disappointing cycle where most altcoins lagged far behind Bitcoin. Market analyst Willy Woo argues that structural forces, not weak fundamentals alone, drove this divergence.
He points to events following FTX’s 2022 collapse as a turning point that reshaped capital flows and investor outcomes. Consequently, many retail participants entered positions without realizing that significant supply had already been redistributed behind the scenes.
How Post-FTX Deals Reshaped Markets
After FTX entered bankruptcy, liquidators rushed to sell large holdings, includin…
Read The Full Article Why Bitcoin Outpaced Altcoins After the FTX Collapse On Coin Edition.
1654073624197.png)
Read More
Bitcoin Reclaims $64K Despite Strategy’s New Sale and Resumed US-Iran Strikes: Weekly Recap
