On Wednesday evening, Bitcoin was largely flat, but Dogecoin and Ethereum saw gains with the total market value of cryptocurrencies being roughly constant at $1 trillion. After a largely lackluster market month, cryptocurrency ended October slightly higher, setting up what may be a busy November. Many cryptocurrency companies began to struggle as a result of falling bitcoin prices as the U.S. The Federal Reserve scaled back its pandemic-era support.
Over 70% of the recent peaks have been lost by large corporations like Bitcoin, Ethereum, and others. The Fed, which is steadfastly working to control inflation, is on track to announce another rate hike.
Cofounder of “Ethereum killer” Tezos Kathleen Breitman predicts that the current bear market cycle in cryptocurrencies will only worsen. Breitman explains that cheap money “inflated” the most recent bull run.
She said that “a lot of easy money was pouring into the system.” The co-founder of Tezos thinks that the value of cryptocurrency enterprises has increased. She cited the fact that despite its sales volume dropping compared to 2021, the top NFT marketplace OpenSea is still valued at an astounding $13.3 billion. “There was a lot of cheap money that went in. Valuations went super sky-high,” Breitman noted.
Bear cycle similar to previous cycle?
The analytics company Glassnode compared the bottom of the current Bitcoin market cycle with those from earlier bear markets in its “week on-chain” report on October 31. A double-top rejection from last week’s relief rally appears to have put an end to it. The market was “hammering out a Bitcoin bottom, with almost textbook similarities to earlier cycle lows,” according to Glassnode.
It stated that, similar to earlier cycles, investors and hodlers have suffered significant financial losses as a result of the bear market in Bitcoin. It went on to say that the only thing left is a component of time and investor indifference.
Was this writing helpful?
The Crypto Bear Market Could Have Been Much Worse – Says FTX CEO Sam Bankman-Fried – Coinpedia – Fintech & Cryptocurreny News Media
After Jerome Powell’s remarks at the Jackson Hole Economic Symposium, the price of bitcoin dropped. The asset’s price dropped by almost 6% over the previous week. Bitcoin increased by 2% the previous day, outpacing volume from the day before, and reaching a high of $20,000. Part of the losses from Monday has been recovered by the largest cryptocurrency by market cap.
Sam Bankman-Fried, chief executive officer of FTX, remarked that in terms of asset prices, the crypto winter might have been considerably worse. The sector, according to the billionaire investor, needs competent regulation, and it makes little difference who does it.
He also discussed the many investments his companies had made in cryptocurrency firms. Bankman-Fried claimed that while some rescue investments were successful, others fell short of expectations.
Things will be in control
Even though Bitcoin’s price once again dropped below $20,000 to start the week, the FTX CEO thinks things won’t get too terrible. According to Bankman-Fried, the Bitcoin price situation could have been worse in an interview with Bloomberg.
According to the investor, he is not concerned about the business collapsing any time soon. He labeled the outcomes of investments totaling $1 billion in a crypto bailout as “mixed.” The CEO emphasized that the funding was provided with the goal of assisting cryptocurrency startups, not profiting from transactions.
The investor said that in order to gain support for the cryptocurrency ecosystem, he is actively lobbying Congress in Washington. He responded that it would not really matter when asked about the lack of clarity regarding which regulatory authority may monitor crypto businesses. The Securities and Exchange Commission or the Commodity Futures Trading Commission could regulate the sector, he continued, and that would be great with him.
“What we’ve tried really hard to do over the last year is get the industry to a place where it is happy to accept sensible regulation. I believe tensions have cooled somewhat between regulators and the digital currency companies.”