Bitcoin (BTC) fell 22% in the seven-day period to Sunday, and analysts are scrambling to gauge the outlook – for digital asset markets as well as the potential for policy ramifications amid the backdrop. annus horribilis for the blockchain industry, newly hurt by FTX scandal.
As a new week begins, the market is still looking for a bottom: CoinDesk Market Index (CMI) down 0.8% in the last 24 hours.
Here is a sample of the comment:
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Sean Farrell, head of digital asset strategy, FundStrat: “Over the past six months, we have seen the unraveling of a leveraged network entangled in the crypto space. It started with LUNA/UST, which appears to have been resolved within 3AC, only to see that the SBF now also appears to have defaulted…. We think it’s appropriate to wait for the low as there is good reason to think there will be other casualties, possibly leading to a tie-up. must sell or at least risk bad headlines.”
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Joe DiPasquale, CEO of BitBull Capital: “The past few days have seen the space shaken by the collapse of the SBF and expected empire, although the traditional markets show some strength, BTC and crypto have suffered due to Although BTC has paid out around $16,000 at the moment, the extent of the damage to other companies, funds, exchanges is unknown and is likely to emerge in the coming weeks. As before, we believe BTC below $20,000 is an attractive long-term accumulation area, but we remain cautious until the current situation is resolved and sentiment seems to begin to begin. Notably, the past few days have seen a significant drop in exchange reserves for BTC and stablecoins, indicating a lack of trust and widespread fear across the globe. We will watch for signs of regaining public confidence as a positive sign.”
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David Duong, Head of Institutional Research, Coinbase: “The relative stability of the crypto market in recent months has been disrupted…. We have seen broader market volatility despite some macro developments. positive for risk assets overall…. It’s still emerging Which partner? could have lent or interacted with FTX or Alameda and what exactly are those debts…. BTC could not only retest the 2022 low but hit $13k…. We think there is support at $13.5k. “
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Arcane Research Newsletter: “The situation is a mess…. One of the biggest crypto companies in the industry has been playing with customers’ money. An embarrassment for the industry, but it also reminds us of what this unbridled Wild West is still like. The contagion from this is sure to grow in the coming weeks. “
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Galaxy Digital Newsletter: “It is likely that FTX depositors who still have funds stuck on the exchange will be treated as unsecured creditors and face a lengthy legal process. Although some companies have been proactive and publicly offer some transparency on exposure to FTX, but the full extent of exposure in the industry is unknown at this point in time… Huge amounts of money are at stake (possibly subject to loss) lost), but the impact of FTX’s demise was even further magnified by the exchange’s wide-ranging marketing efforts and the prominence of Sam Bankman-Fried… His support and the radicalization of his downfall cannot be underestimated and will have a lasting effect in Washington on crypto policy.”
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GSR Crypto Weekly Summary: “It’s sad that 2022 in the crypto space is not about the potential of cryptocurrencies but about leverage, greed, fraud and lack of transparency – the very things that those involved have accused TradFi of. and vowed to change.”
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Pantera Capital Blockchain Letter: “In the short term, there will be pain for those who lose money holdings on the FTX exchange. Broadly speaking, we expect further price volatility across the crypto ecosystem due to concerns about volatility. The spread causes asset holders to adjust their portfolios.FTX-linked assets (Solana and projects built on it, Aptos, etc.) will likely be affected. The heaviest…. The episode will also likely be a setback to adoption, as some retail users who lost money choosing to leave the space and others may have joined as soon as possible. fear on the sidelines. We hope the organizations that were previously wary of the space to deepen their skepticism.”
