Trading Strategies Emerge as Bitcoin Surges Post-FTX Collapse

In the aftermath of FTX’s bankruptcy, the crypto landscape witnessed substantial shifts, impacting altcoin enthusiasts while Bitcoin exhibited robust growth. Market expert Willy Woo shared insights charting how these developments reshaped patterns between 2023 and 2025, observing a notable divergence in performance metrics.

FTX’s Asset Liquidation: Who Benefited?

FTX, once a giant in digital currency trading, faced dire straits in late 2022. The ensuing bankruptcy process saw administrators prioritizing the unblocking of FTX assets. Substantial locked Solana tokens and other project-related holdings were liquidated through discreet off-chain transactions. This strategic offload allowed hedge funds to buy these assets at discounts exceeding 60% in many scenarios.

Why Did Bitcoin Outshine Other Cryptocurrencies?

Bitcoin’s resilience stood in stark contrast to the wider cryptocurrency sector during this period. Its market dominance soared to touch between 55% and 60%, alongside crossing the $88,000 mark by late 2025. In contrast, altcoins largely stagnated as institutional hedging absorbed much of the anticipated demand.

Woo highlighted the development as a diversion strategy. He observed:

“All the alpha that retail investors anticipated went to market-neutral hedge funds, which captured the risk-free yield. The beta play that individual participants counted on simply evaporated.”

Market insights from CoinGecko reported Bitcoin priced at $71,285, reflecting a 2.47% daily increase. Meanwhile, the Altcoin Market Index lagged, showing no classic signs of a renewed rally.

Woo addressed immediate strategies going forward, cautioning investors against potential token unlocks that appear threatening but could have minimal market impact due to pre-existing off-chain trades. He suggested Bitcoin as the primary focus for a secure growth outlook amid upcoming cycles.

Offering a broader perspective, FTX creditor Simon Dixon discussed the Chapter 11 repercussions, describing them as mechanisms redistributing wealth to a small elite. He lamented the plight of creditors, advocating self-custody for future asset protection.

“Chapter 11 is another wealth transfer to a small club within the financial-industrial complex, one that profits while lawyers drain the creditors.”

Overall, Woo and Dixon underscored how those privy to optimal market frameworks saw significant advantages, while retail investors observed steadier outcomes by aligning with Bitcoin rather than venturing into altcoin realms.