Bitcoin’s price fell below $17,000 per Bitcoin from nearly $70,000 late last year, and Ethereum’s price fell as well.It’s causing serious problems for some of the biggest crypto companies.
Brian Armstrong, CEO of Coinbase, currently one of the world’s largest bitcoin and cryptocurrency exchanges, said:
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“I think there’s a little more contagion from FTX, but my hope is that [everything moves] Through the system, in the next few months, or at most in the quarters,” Armstrong said. Axios and interviewcompares the panic caused by the FTX meltdown to the collapse of Bitcoin exchange Mt. Gox in 2014.
In the aftermath of last month’s shocking FTX implosion, some of the world’s biggest cryptocurrency companies are already in crisis. Fear still swirls that other big companies and cryptocurrencies are teetering on the brink of collapse.
Crypto lender BlockFi followed FTX into bankruptcy last month, raising questions about how many other crypto companies could suffer from the FTX contagion. Earlier this year, the sudden crash of an algorithmic stablecoin called terraUSD and its supporting coin luna wiped out crypto hedge fund Three Arrows Capital and crypto lenders Voyager and Celsius.
Coinbase’s share price fell alongside Bitcoin, Ethereum and crypto markets this year, dropping almost 90% in 2023 as traders abandon crypto trading platforms, but Armstrong remains optimistic. .
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“Coinbase’s bullish case is that we are the market leader in terms of trust and the largest [exchange] “The market is giving us very clear feedback that they want to work with trusted companies if they are going to be a centralized actor,” Armstrong said.
This year’s ‘cryptopocalypse’ and ‘inflationary pressure’ named as two of 2022’s biggest trends by survey of restructuring experts polled By petition.
Inflation, which has soared to its highest level in 40 years, has forced the Federal Reserve (Fed) to make a brutal series of rate hikes this year. Pushing prices down across the board, possibly into 2023.