On 26 November, 2022, the Director of Metalla Royalty, E.B. Tucker discusses the recent FTX fallout, Housing, asset prices, and the Gold price prediction in an interview with David Lin, Anchor of Kitco News.
Mr. Tucker warned the crypto investors to stay aware about the crypto entities as more impending bankruptcies for crypto entities may happen in coming times.
The whole year of 2022 has experienced major ups-downs and thus the prices of crypto tokens saw huge-drop. Moreover, several crypto entities went bankrupt in between the sustained bearish market conditions.
The Key-Noted of Mr. Tucker’s Interview
According to Mr. Tucker, “Most of these entities associated with crypto will go bankrupt. So that doesn’t mean that crypto goes away; it just means that the speculation was so out of control that you had so much hoping and leveraging and betting and gambling going on. The hangover is going to be intense.”
“Each thing that happens is like a total surprise, but it’s not a surprise. There’s a readjustment going on here; you will eventually have a Fed coin. The Fed is testing a digital dollar payment system as we speak; there’s been news out on that this month,” he further added.
It must be noted that this interview of Mr. Tucker came at the time when the crypto market saw high-profile bankruptcy cases, in which the FTX collapse is the latest one. Well, the FTX case had a ripple effect, while the other associated firms are staring at possible bankruptcy.
Just before the FTX collapse, Celsius Network, the crypto lending platform, filed for Chapter 11 bankruptcy after halting the user withdrawals. Thus, Mr. Tucker thinks that this kind of event should not be surprising in upcoming times.
Furthermore, the massive price drop of cryptocurrencies is partly due to these bankruptcies amid the prevailing macroeconomic factors led by high inflation. Simultaneously, the inflationary environment has resulted in fears of a possible recession.
Gold Price Prediction in 2023
The Director of precious metals royalty and streaming firm, Metalla Royalty, seemed optimistic about the Gold price. He predicted that gold could likely break out at the beginning of 2023, noting that the precious metal will potentially hit $2,070 to replicate previous highs. But at the same time he said that gold would end the year on a depressing note.
In between the dominating market conditions, Bitcoin (BTC) has failed to meet expectations of serving as a hedge against inflation or a possible replacement for the precious metal, Gold. With Bitcoin consolidating below $17,000, Mr. Tucker sees that gold will likely rally and reclaim new highs by the end of the year.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2022/11/28/e-b-tucker-is-optimistic-for-gold-price-pessimistic-for-crypto/