According to a report FTX bankruptcy proceedings will be closely watched for the digital assets sector many still depend on the path of interest rates in the U.S.
The Duration of Crypto Winter
Two crypto analysts, David Duong and Brain Cubellis shared their outlook on the crypto winter as the new happening in the crypto market and mass left by the buyers potentially extended the already long crypto winter.
The FTX bankruptcy filing no-doubt, has damaged investor’s confidence in the crypto ecosystem and thus gaining back that trust of buyers will surely require much more time that will for sure increase the duration of crypto winter. An estimated duration for the current crypto winter is till the end of 2023.
After the FTX collapse, it is likely assumed that the crypto winter would extend. Coinbase, the crypto exchange, shared that it has a sound risk management program and a strong capital position.
The crypto exchange added that it usually does not make any comment over crypto events but for the sake of clarity, it added that it has zero exposure to Genesis Trading. Coinbase assured that it will keep working to grow the cryptocurrency in a responsible way and will continue to protect its customers.
Coinbase: “Trust Us”
The crypto exchange on November 18, 2022, shared a tweet along with an image that titled “Trust Us,” along with “The Wall Street Journal” heading. It which it added that ” We are headquartered in the United States. We hold our customers’ assets 1:1, We don’t trade against our customers, and we don’t leverage their funds without consent, and provide the transparent accounting and audits that are required of a public company.”
Recent Crypto Winter Updates
Cheelee, GameFi short video platform, launched a $200 Million crypto winter solidarity fund, and the investments will go through the crypto winter solidarity fund run by Roman Alekseev and his partners, as per his recent Instagram post.
Arca CIO, Jeff Dorman, said in a recent interview that due to the impact of FTX collapse on the crypto industry “We could go through a couple of months of stagnant prices.”
The second most traded cryptocurrency, Ethereum, is estimated to dump below $1K in crypto winter. It can be seen that the price of Ethereum has steadily descended since the start of the year, and it saw further downturns after the long-awaited Ethereum network transition from proof-of-work to proof-of-stake, also known as “the merge.”
Now, it will be quite interesting to watch how recession and the US’s tightening policy affect worldwide inflation. It may be increasingly challenging to hold long positions in crypto or other long-term risk assets if USD becomes more stable.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing
Source: https://www.thecoinrepublic.com/2022/11/19/how-long-will-the-crypto-winter-stay/