Bitcoin (BTC) has dropped 22 percent in the seven-day period leading up to Sunday. Cryptocurrency experts are evaluating a “bad year” for the cryptocurrency industry that has been hit by FTX. Cryptocurrency markets are scrambling to assess the outlook for possible policy implications. As Kriptokoin.com, we convey the comments of the experts to you.
Experts share their views on the cryptocurrency markets
Sean Farrell, head of cryptocurrency strategy at FundStrat, is one of those commenting on the matter. Regarding the FTX crisis, Farrell has this to say:
In the past 6 months, we have witnessed the unraveling of a leverage network circulating the cryptocurrency space. The problems started with the LUNA/UST. Then we faced bankruptcy at 3AC. Now we see that the SBF is bankrupt. It is possible that it may cause a selling pressure. With panic, people can take action.
BitBull Capital CEO Joe DiPasquale draws attention to the impact of the event on the declines in the crypto market, especially Bitcoin:
The last few days have seen the field shaken by the collapse of FTX. As expected, BTC and cryptocurrencies took a hit due to weak sentiment, although traditional markets showed some strength. The extent of the damage to other companies, funds, stock markets is not yet known. Developments on these may come out in the coming days. As before, we believe that BTC below $20,000 is a long-term accumulation. However, we remain cautious until the current situation is resolved satisfactorily and sensitivity begins to return to normal. Specifically, the last few days have seen a significant drop in foreign exchange reserves for BTC and stablecoins. This shows a lack of trust and prevalence as a result. As a positive indicator, we will be watching for signs of a return of trust among the masses.
Head of institutional research at cryptocurrency exchange Coinbase says BTC will drop further
David Duong, head of institutional research at Coinbase, pointed out that the crisis affected the BTC price the most. In addition, Duong predicts that the Bitcoin price will decline further and says:
The relative crypto market stability of recent months has been interrupted. Despite some positive macro developments for cryptocurrencies as a whole, the broader market has witnessed instability. Counterparties may have lent or interacted with FTX or Alameda. What exactly these debts are, we don’t know yet. BTC not only retests 2022 lows, it could touch $13,000. We think there is support at $13,500.
The coming weeks are important for the crypto market
In the comments made by Arcane Research, attention is drawn to the complexity of the situation. He states that all the events experienced will be shaped in the coming period:
It’s a mess. One of the biggest crypto companies in the industry played with their customers’ money. It’s embarrassing for the industry. But at the same time, all this has shown us how erratic this is still. The contagion from the collapse will undoubtedly improve in the coming weeks.
Galaxy Digital: The destruction caused by the collapse cannot be underestimated
Galaxy Digital, of which Mike Novogratz is the CEO, states that FTX has caused serious damage to the stock market. In the statements made, especially large amounts of lost crypto money were discussed:
FTX victims who still have funds stuck in the exchange are likely to face a lengthy legal process. While a few firms proactively and publicly offer some transparency about their exposure to FTX, the entirety of the industry’s harm is currently unknown… Enormous amounts of money are at stake or lost. But the impact of FTX’s collapse is magnified by the exchange’s far-reaching marketing efforts and the prominence of Sam Bankman-Fried. The extremes of decadence cannot be underestimated. Also, there will be long-term ripple effects for cryptocurrency policy in Washington.
Companies affiliated with FTX are in danger!
Liquidity service provider GSR commented on weekly cryptocurrencies as follows:
It’s really sad that the year 2022 isn’t about the potential of cryptocurrencies, but rather about leverage, greed, fraud and lack of transparency. There are cases where people involved have blamed TradFi and promised to change it.
In a statement published by Pantera Capital, the following statements were included:
In the short term, it will have painful consequences for those who lose their funds held on FTX’s exchange. More generally, we expect more price volatility in the crypto ecosystem as contagion fears lead crypto holders to adjust their portfolios. Related to FTX, Solana and the projects built on it, Aptos etc. likely to be among the most affected. Some retail users who were losing money chose to leave this space. The result will likely be a decline in adoption. Users who join earlier are afraid to wait. We expect institutions that were previously wary of this area to deepen their suspicions.
Cryptocurrency analyst shared his expectation for BTC price
The crypto strategist who correctly predicted the collapse of Bitcoin last year has made a new comment. The analyst believes that BTC can handle even the most negative developments. Known as Dave the Wave, the analyst shared his expectation with 130,200 followers on his Twitter account. Crypto markets are facing problems after crypto exchange FTX filed for bankruptcy.
However, the analyst also reminds his followers that Bitcoin has managed to stay in a long-term uptrend:
One of the positives is that the speculative instinct has a short memory. This is because the now fearful, now greedy markets tend to dominate. Do not underestimate the speculative situation underlying the BTC market, as reflected in the LGC (logarithmic growth curve), which, according to the translation, shows the capacity to receive the most terrible news and actions.
Analyst drew attention to this oscillator
He also points out that Bitcoin’s price and logarithmic moving average divergence (LMACD) indicator is showing a bullish trend on the weekly chart. The LMACD indicator is designed to reveal changes in a cryptocurrency’s trend, strength and momentum.
Weekly BTC bullish divergence. A bullish divergence occurs when prices fall to a new low when an oscillator fails to reach a new low. As a result, this shows that the bears are losing strength and the bulls are ready to take control of the market again. Then usually a bullish divergence marks the end of the downtrend.
Dave the Wave highlights that even amid the disaster caused by FTX, Bitcoin remains at accumulation levels:
If you look at the BTC macro context, the volatile price remained in the buy zone throughout the entire FTX-triggered fiasco.
Bitcoin is currently trading at $16,773.66, up 0.6 percent in the last 24 hours.
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