So I looked into this a little. While of course there could be ripple effects, I don't see why this would have much influence on the price of Bitcoin in the long run. FTX has none left, so it's not like a large amount could be dumped.
And the larger companies who really do own Bitcoin (Coinbase, Binance, etc.) whose income is mainly generated by transaction fees are unlikely to become illiquid due to withdrawals because they actually do store the coins of their customers and don't speculate with them. Meaning, they have no reason to dump any Bitcoins to stay solvent. Some people withdrawing Bitcoin to their own wallets now does not influence the price, either, it just reduces the amount directly available for trading (meaning, there could be bigger price swings like with stocks that have a small float).
In conclusion, I doubt that this will be the end of cryptocurrency. It will probably only lead to the richest (who already own most Bitcoins and don't care even about 90% price drops and who intend to hold it for decades) to accumulate even more at cheaper prices.
Does my reasoning make sense? (Just to be clear, I am not a crypto bro, I just found this interesting).
