Cointelegraph breaks down the main events that led to the collapse of Silvergate, SVB and Signature Bank and explains what this all could mean for crypto. Cointelegraph YouTube Subscribe Own this piece of history Collect this article as an NFT
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Despite the market downturn and the widespread negative sentiment in the industry in the wake of the FTX collapse, on-chain data still show reasons to be bullish on Bitcoin. As pointed out by on-chain analyst Will Clemente, it’s enough to look at the long-term holders’s Bitcoin positions: they reached an all-time high despite their profitability being at an all-time low. “Long-term holders buy heavily into the bear market. They set the floor[…] and then those long-term holders distribute their holdings to new market participants in the bull market”, he told Cointelegraph in an exclusive interview. Another positive trend worth noticing after the FTX collapse, in Clemente’s opinion, is that the average crypto users are increasingly turning away from exchanges and taking self-custody of their own coins. According to Clemente’s analysis, that is shown by the increasing outflow of capital from exchanges to self-custody wallets and also by an increasing amount of supply held by entities holding between 0.1 and 1 Bitcoin. “By combining those two metrics, you get this picture of coins coming off exchanges into these custodial wallets for the average everyday retail person. And so I think that’s very positive”, he said. To find out more about the silver lining in the aftermath of the FTX collapse, check out the full interview and don’t forget to subscribe!
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The repercussions of the cataclysmic FTX downfall are going to be broader than the crypto markets, as they will accelerate downward moves in stocks and commodity markets, according to Mike McGlone, senior marco analyst at Bloomberg.“Bitcoin has been one of the leading indicators on the way up, and it’s a leading indicator on the way down. And it’s just broken down, so expect most dominoes to fall,” McGlone pointed out in a recent interview with Cointelegraph. McGlone expects traditional stocks to continue falling as the Federal Reserve keeps raising interest rates in an attempt to curb inflation. According to the analyst, the FTX crisis will also accelerate the decline in commodity prices as the world economy enters a period of recession.The FTX shock will likely send Bitcoin prices to new lows, according to McGlone. “I’m afraid Bitcoin might head to the $10,000 to $12,000 area,” he believes. To understand the implications of the FTX crisis from a global macro perspective, watch the full interview on our YouTube channel, and don’t forget to subscribe!
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Institutions’ investment in crypto has increased in 2022 despite the bear market, according to a recent survey by Fidelity Digital Assets. In particular, the amount of large investors betting on Ethereum have doubled in the last two years, as revelead by Chris Kuiper, the Head of Research at Fidelity Digital Assets in a recent interview with Cointelegraph. “The percentage of respondents saying they were invested in Ethereum doubled from two years ago”, pointed out Kuiper. Kuiper pointed out that Ethereum’s appeal in the eyes of institutions is likely to increase even more now that after the Merge, Ether has become a more environmentally friendly, yield-bearing asset. In general, according to the same survey, institutional players are accumulating crypto despite the crypto bear market. At the end of the second half of 2022, 58% of the institutions surveyed were holding cryptocurrencies, a 6 percent increase from last year. Moreover, 78% were planning to tip their toes in crypto in the future. The main reason for that, the survey shows, is the conviction of the long-term upside potential of digital assets. “They’re agnostic to some of this crazy volatility and price because they’re looking at it from a very long-term perspective”, Kuiper explained. To learn more details about how institutional capital is flowing into crypto, check out the full interview, and don’t forget to subscribe to our channel!
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The anticipation of the next Bitcoin (BTC) halving will be the main catalyst that sparks a new crypto rally as soon as the second quarter of 2023, according to hedge fund manager Mark Yusko. The halving mechanism, which reduces Bitcoin’s block rewards by half every four years, has historically been a major catalyst for crypto rallies. The next halving is expected to occur in early 2024. “Usually the market will anticipate that by about nine months,” Yusko said in a recent interview with Cointelegraph.According to the hedge fund manager, the halving will propel Bitcoin to $100,000, and potentially beyond, “by the laws of math.”“If the block rewards get cut in half to 3.125 from 6.25, then the price has got to double-ish in order for the miners to continue to make money,” he stated.Yusko thinks the rally is going to take place despite an unfavorable macroeconomic picture dominated by high interest rates and slow growth. That is because, according to Yusko, digital assets will ultimately prove to be uncorrelated with equity markets. “Traditional assets are driven by economic growth, Fed policies, inflation. Crypto is driven by the technology itself, millennial adoption,” explained Yusko. Watch the full interview on our YouTube channel, and don’t forget to subscribe!
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