Bitcoin price more correlated to FTX developments than macro events: Research

Feb 09, 2023

By Luke Huigsloot

While inflation has an effect on the price of Bitcoin, researchers were bewildered by bitcoins resilience to other macroeconomic factors.

The collapse of FTX and related developments did more to pull up or push down the price of Bitcoin (BTC $21,862) throughout Q4, compared to macroeconomic events such as rate hikes, according to research.

In a “State of Bitcoin Q4 2022” report published on Feb. 10, Messari research analysts Sami Kassab and Chris Collar found that the collapse of the exchange resulted in a 25% decrease in the price of Bitcoin.

The report highlighted that changes to the federal funds rate had a much smaller effect on the price of Bitcoin, even after 75 and 50 basis point hikes

It also pointed out that active wallets increased by 2% compared to the previous quarter as Bitcoin was moved out of centralized exchanges to self-custodial wallets during the period

A research paper from the Federal Reserve Bank of New York earlier this week came to a similar conclusion.

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