Terra and FTX Failures a Good Thing For BTC
According to many financial and crypto analysts, the failure of FTX and Terra was a blessing in disguise as it helped remove weak hands, which would have posed a major risk for BTC in the long term.
Mark Connors, head of research for Canadian crypto asset manager 3iQ, said that while speaking with CoinDesk, the failures of FTX and Terra helped Bitcoin decouple from weak crypto firms. According to him, "from a technical standpoint, weak hands were washed out of crypto in the aftermath "of the [Terra] and FTX failures so (there was) more upside risk for BTC."
Richard Mico, the U.S. The CEO of Banxa also spoke about the recent Bitcoin price surge, saying that it has helped many assets to rebound from oversold positions last year. "The December lows followed extreme volatility because of the FTX debacle, with the major crypto assets looking extremely oversold back then. It also appears there was significant tax-loss harvesting in December. Now, there are not that many forced sellers left in this market. They’ve already been washed out with various short squeezes," Richard Mico said.
