Grim view for Bitcoin, ether prices as more body on the surface
Grim view for Bitcoin, ether prices as more body on the surface
cryptoanalysts forecast further turbulence for Bitcoin and Ether prices in the next nine months, since the industry collects the shards after FTX's shock collapse.
Bitcoin and Ether were traded at 9:00 p.m. ET at $ 4,800 or $ 1,260, both by about 20 % in the past week and 65 % in the previous course.
The entire market capitalization of the cryptocurrency has lost a similar amount. Digital assets have lost a total of $ 215 billion in nominal value since this time last week-before the obvious abuse of user funds from FTX CEO Sam Bankman-Fried has come to light and has dropped from $ 1.1 trillion to $ 885 million.
Even if FTX gets foot and saved by a company that is ready to take over his debts, the cryptoma markets are scared, said Daniel Kim, director of investments at FBG Capital based in Beijing, in an interview with block works.
Gun-to-Head scenario: Kim believes that the markets are intended for further corrections to up to $ 13,000 for Bitcoin and between $ 900 and $ 1,000 for ether. But it is everyone's assumption that analysts argue. The FTX situation continues what makes it difficult to map exactly how high the risk of infection in the ecosystem is.
"The supervisory authorities have a strong limelight to monitor everything that is going on, and unfortunately many institutions- both crypto and traditional- are affected," said Kim.
Bitcoin and ether suffers the defi ecosystem of Solana
at Solana, the native token of the blockchain of the same name, supported by Bankman Fried, will lead the uncertainty in the Defi sector to further declines, Gracy Chen, Managing Director of the Krypto Exchange Bitget, told Blockworks.
the same applies to accompanying tokens, such as the one that drives the decentralized exchange platform Serum, which played a major role in Alameda's balance sheet that was leaked at the beginning of this month.
Packed Bitcoin and Ether-tokens on Solana have In the last two days overall by more than 70 % compared to their underlying assets BTC and ETH crashed. FTX handled their collateral after spending both assets for use within the Solana defi ecosystem.
"For the projects invested by FTX Ventures and Alameda, there will be a continuous sales pressure for tokens that are issued by these projects," said Chen.
The rise of Solana and other similar blockchains seemed to end a debate in the web3 room, said Chris Georgen, founder of the Proof-of-Stake-Blockchain Topl.
decentralization did not matter; The governance structure could largely be ignored, and deep investor bags would determine the direction of the industry, said Georgen.
The collapse of FTX and Alameda, the primary checkbooks and hype engines behind the majority of Web3, will hopefully reopen this debate, said Georgen.
"If we only use crypto tokens as a new asset to speculate on Web2 or traditional status quo (or worse) in terms of governance and decentralization and accept it, is the risk of it really worth it?" asked Georgen.
While the effects continue to take place, one thing is certain: several legal disputes collapse, since many previous and current FTX customers cannot access their funds.
The bankruptcy of FTX according to Chapter 11, which was submitted on Friday, only causes confusion among his users, who are now in fact. That, combined with what A hacking incident appears on the remaining crypto of the To be a stock exchange is just more afraid.
institutions could rebuild trust in crypto - at some point
It could also be a stricter US regulation in sight, something that instinctively rejects crypto-diehards. However, more regulation could strengthen the trust of investors and restore institutional engagement.
That would ultimately lead to higher prices, said Jehan Chu, founder of the Hong Kong, commercial and investment company Kenetic. But until then it is due to the market to cum on what Bankman-Fried lit.
"Threatening infection among lenders, merchant tables and hedge funds - in the coming weeks, further corpses will float on the surface," said Chu. The debris quickly spread to crypto -related shares, risk capital companies and even teacher funds in the distant Ontario, Canada.
Appropriate risk management and higher walls for the participation of retail, similar to Singapore and Hong Kong in the past, are required as a guarantee for a more mature market, he added.
"After 6-9 months with low volume/liquidity, the next iteration of first-class institutional actors is listed, which with fully regulated platforms, reasonable risk management and higher walls will take place for the participation of retail."
The analysts agreed: none of this promises anything good for an investment class that had hardly recovered from the spectacular implosions of industry greats such as Terra, Celsius and Voyager.
"I think the mass individual market and the traditional market will remain on the sidelines for a while due to the lack of trust," said Kim from FBG Capital. "Unfortunately, FTX has invested some of the biggest traditional names in them, including Tiger Capital and Temasek, which will leave a bad aftertaste."
David Canellis contributed to reporting.
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The contribution Outlook Grim for Bitcoin, Ether Prices as 'More Bodies to Surface' is not a financial advice.