Cryptocurrency exchange Coinbase released a new research report on Tuesday. The published report draws attention to the collapse of FTX. In addition, the leading cryptocurrency BTC, the leading altcoin ETH and memecoin DOGE were also included. Coinbase stated that important transactions in May and June were repeated after what they caused the crypto industry. He said that the markets were in a positive state until the FTX crisis.
The report specifically includes BTC miners.
Cryptocurrency analysts David Duong and Brian Cubellis discussed the movements in the crypto market. It is stated that new turbulence and the absence of large buyers leave the industry vulnerable. He also wrote that what happened is potentially extending the already long crypto winter. Cryptocurrency analysts are divided into two. Some say that the declines will continue in most cryptocurrencies, especially BTC.
As we have reported as Kriptokoin.com; The report states that FTX bankruptcy proceedings will be closely monitored. However, interest rates in the US are another factor for the cryptocurrency industry. If the Fed continues to raise interest rates, it is likely to cause further declines in the cryptocurrency markets. The report also says it will identify which counterparties are lending to the exchange or Alameda Research. Afterwards, it is expected that whether they interact or not and what exactly their obligations are.
The stock market drew attention to the increasing hashrate
In addition, the emerging new interaction raises the possibility of seeing “quasi-effects” from the FTX crisis. Coinbase says the weak liquidity could last at least until the end of the year. As a result, it was stated that stablecoin dominance is 18 percent of the total crypto market value. Stablecoin dominance is reported to have dropped to $800 billion on November 12. At the end of last month, it was in the trillions.
Stablecoins represent cryptocurrencies whose value is pegged to another asset such as dollars or gold. In addition, the following statements are included in the report:
Increased hashrate (which increases difficulty as a result), increased energy costs. Now it’s a combination of weaker BTC prices. It has led to increasingly stressful economic conditions for BTC miners.
Hashrate is one of the measurement units of computing power devoted to BTC mining. However, as the hashrate increases, so does the difficulty of producing the cryptocurrency. The crisis in FTX has undoubtedly seriously damaged investor confidence in the industry. It seems like it will take some time to fix it. Accordingly, we are potentially in a crypto winter. Generally speaking, it is likely that the crypto winter will extend for a few months or until the end of 2023.
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