After the collapse of FTX, there is anxiety in the cryptocurrency market. Metalla Royalty director warns that most crypto assets will go bankrupt. However, he says gold prices will see $2,000 in 2023.
“Most crypto-related assets will go bankrupt!”
Several organizations that went bankrupt amid sustained bearish conditions have appeared on the 2022 crypto market scene. Those who played a role in this scene were affected by the depressive price movements. In this line, EB Tucker, executive director of precious metals copyright and publishing company Metalla Royalty, warns of more bankruptcies for crypto assets. According to Tucker, crypto industry bankruptcies do not mean that the industry will disappear completely. He also points out that the current situation is mainly due to excessive speculation. In this context, Tucker makes the following statement:
Many of these crypto-related assets will go bankrupt. So this does not mean that crypto will disappear. It just means that the speculation has gotten so out of control. There is still a lot of hope and leverage, betting and gambling still going on. The hangover will be intense.
“Everything that happens is like a complete surprise, but not a surprise!”
Specifically, Tucker’s comments come as the crypto market is hit with high-profile bankruptcy cases. As you follow on Kriptokoin.com, the latest cryptocurrency exchange FTX has crashed. Indeed, the FTX case created a ripple effect as other related companies faced possible bankruptcy. Prior to this, crypto lending platform Celsius Network filed for bankruptcy after stopping user withdrawals. Interestingly, Tucker argues that such events should come as no surprise. Based on this, he makes the following assessment:
Everything that happens is like a complete surprise, but not a surprise. Here’s a refactoring. Eventually you will have a Fed money. As we speak, the Fed is testing a digital dollar payment system. There has been news about it this month.
Additionally, the bankruptcies partially contributed to the expanding cryptocurrency bear market amid the prevailing macroeconomic factors driven by high inflation. At the same time, the inflationary environment resulted in fears of a possible recession.
“Gold will rally in 2023”
Among the current circumstances, Bitcoin (BTC) has failed to fulfill its duty of hedge against inflation. So it failed to meet expectations to serve as a possible substitute for gold. Leading crypto Bitcoin is currently consolidating below $17,000. However, Tucker predicts that the gold price will likely pick up and reach new highs by the end of the year.
The director predicts that the yellow metal could erupt in early 2023. Accordingly, he points out that the gold price will potentially reach $2,070, repeating previous highs. However, he also notes that the gold price will close the year on a depressing note.
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