After Bitcoin’s Worst Week in Five Months, Here’s What Crypto Analysts Say

Bitcoin (BTC) is down 22% in the seven-day period to Sunday, as analysts scramble to assess the outlook – for digital asset markets as well as potential policy fallout amid awesome year for the blockchain industry, which was recently hit by the FTX scandal.

As the new week begins, the market is still looking for a bottom: the CoinDesk Market Index (CMI) is down 0.8% in the past 24 hours.

Here is a sample comment:

  • Sean Farrell, Head of Digital Asset Strategy, FundStrat: “In the past six months, we have seen the disintegration of a web of influence that has tangled the crypto space. It started with LUNA/UST, which appears to have been resolved in a 3AC solution, only to find that SBF now appears to be insolvent as well….we think it is It is appropriate to wait for lower dips where there is good reason to believe there will be further losses, which could lead to forced selling or, at the very least, bad major risks.”

  • Joe Dipascual, CEO of BitBull Capital: “The past few days have seen the space shaken by the collapse of the SBF empire, and while traditional markets are expected to show some strength, BTC and cryptocurrencies have been hit by weak sentiment. The extent of the damage to other companies, funds and exchanges is not yet known, and may come to the fore in the coming weeks. As before, we believe that BTC below $20,000 is an attractive long-term accumulation area, but we also remain cautious until the current situation is resolved. Satisfyingly, sentiment seems to have started to move towards a relatively normal state.It should be noted that the past few days have seen a significant drop in exchange reserves for BTC and stablecoins, indicating a lack of confidence and spreading fear in the market.Signs of a return of confidence among the masses are being monitored as a positive indicator. “.

  • David Deong, Head of Institutional Research, Coinbase: “The relative stability of the cryptocurrency market has stalled in recent months… We have seen broader market instability despite some positive macro developments for risky assets as a whole… It is still emerging which counterparties may have lent or interacted with FTX or Alameda.” And what exactly are those commitments…..BTC can not only retest the 2022 lows, but touch the $13,000 level… We believe there is support at $13.5K.”

  • Mysterious research newsletter:This situation is messy….one of the biggest crypto companies in the industry has been playing with clients’ money. This is an embarrassment to the industry, but it also reminds us of what this Wild West remains unregulated. Infection from this will undoubtedly develop over the coming weeks.”

  • Galaxy Digital Newsletter: “It is possible that FTX depositors who still have money stuck in the exchange will be considered unsecured creditors and face a lengthy legal process. While many companies have proactively and publicly offered some transparency about exposure to FTX, the total industry exposure remains unknown. At this time… an enormous amount of money is at stake (maybe wasted), but the impact of the FTX crash is further amplified by the exchange’s extensive marketing efforts and the emergence of Sam Bankman-Fried… the scale of his advocacy and the severity of his collapse cannot be understated. And it will have long-term ripple effects in Washington for crypto policy.”

  • GSR Weekly Cryptographic Summary: “It is sad that 2022 in cryptocurrency was not about crypto capabilities but rather about leverage, greed, fraud, and a lack of transparency – the very things that the people involved have accused TradFi of and pledged to change.”

  • Blockchain message from Pantera Capital: “In the short term, there will be pain for those who lose funds held on the FTX exchange. On a larger scale, we expect further price volatility across the crypto ecosystem as contagion fears prompt asset holders to adjust their portfolios. FTX-Linked Assets (Solana) ) and projects based on it, Aptos, etc.) will likely be hit the hardest….the episode could also be a setback for adoption, with some retail users who lost money choosing to leave, others who might have joined sooner afraid of staying on the sidelines We expect institutions that were previously worried about space to deepen their suspicions.”

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