Coinbase: There Will Be a Long Crypto Winter Due FTX’s Collapse
According to the experts of US crypto exchange Coinbase, the collapse of FTX has undermined investor confidence and could extend the crypto winter until the end of next year.
They believe that the events around FTX turned into a deleveraging of short positions and the departure of large buyers, which increased the vulnerability of the cryptocurrency market. “Second order effects” that will affect clients and counterparties of the bitcoin exchange and related Alameda Research are not ruled out.
In addition to the processes associated with the bankruptcy of FTX, investors will continue to monitor the dynamics of interest rates.
With their optimistic development, the market will recover from the shock in a few months. Coinbase analysts doubted the improvement of the macroeconomic background in January after the current weakening of the dollar amid encouraging inflation data.
