Bitcoin held steady at its latest $16,000 support for a 10th straight day, even as the contagion sparked by the collapse of FTX expanded.
bitcoin (BTC) was recently trading at around $16,600 on Friday, roughly unchanged in the past 24 hours. Ether (ETH) recently changed hands at around $1,200 and was also stable as of Thursday at the same time.
Over the past seven days, BTC and ETH are down 1.5% and ETH down 4.8% respectively.
The CoinDesk Market Index (CDI), an index measuring the performance of cryptos, barely budged as investors continued to absorb recent events stemming from crypto exchange giant FTX’s filing for Chapter 11 bankruptcy protection last Friday. and the latest revelations about his mismanagement.
A note released Friday by Coinbase Institutional attributed bitcoin and ether’s resilience in recent days to its “relatively limited” exposure to FTX’s balance sheet, creating a buffer for possible mass liquidations.
“The recent performance of these assets may also reflect an implicit recognition that events at FTX were credit-driven, not crypto-driven,” wrote Coinbase head of institutional research David Duong and research analyst Brian Cubellis. , in the footnote.
However, other crypto watchers argue that the continued domino effect after the FTX fallout is still difficult to assess. The Crypto Market Cap fell to less than $800 billion, its lowest level since early 2021.
Crypto asset trading firm QCP wrote in a Telegram note on Friday that BTC and ETH were unable to join the huge post-Consumer Price Index (CPI) inflation data squeeze. organized by global risk assets.
The company said that the underperformance of all crypto assets will remain “until most of the uncertainty has dissipated – probably only around the start of the new year.”
“This completely changes our previous view of a four-year-end macro rally that will be led in crypto by ETH,” the group added.
The “Hodlers” are piling up
Despite general bearish sentiment, on-chain data from crypto data and analytics firm IntoTheBlock shows that long-term BTC holders have increased their holdings by 180,000 BTC, or nearly $3 billion, since the collapse of FTX.
Lucas Outumuro, head of research at IntoTheBlock, said that historically, long-term BTC holders “accumulate heavily in the depths of the bear market” and “start selling after all-time highs.”
“I would say this is most likely the main strategy that Bitcoin believers yearn to recreate based on this on-chain data,” Outumuro told CoinDesk.