The main source of negative messages was the story about FTX exchange. Events around it started rapidly developing since the beginning of November and still only continue to gain momentum. According to analysts at JPMorgan, because of the crisis FTX bitcoin price can fall to $ 13 thousand, and ahead kriptorinok expect weeks of shocks.
"The usual stock market panic."
The current situation in the cryptocurrency market should not be seen as the beginning of the disaster, said a specialist on digital assets marketplace "Finmir" According to him, the sales observed in recent days - this is the usual stock panic.
The reason was the news that the company associated with the cryptocurrency exchange FTX Alameda in the accounts instead of fiat funds worth billions of dollars, the expert recalled. And the last hope for a bailout for these companies collapsed when Binance refused to buy FTX. Now one of the largest exchanges for institutional investors will begin going through bankruptcy proceedings, Pan said.
He added that the development of the story with the bankruptcies of 3AC and Terra (the issuer of the token Luna) also prompted investors to sell their assets yesterday.
"Putting an end to the crypto industry is not an option."
The current situation in the market does not portend a rapid recovery in prices, but also is not a signal that the market will zero out and cryptocurrencies will cease to be in demand, said a leading analyst at 8848 Invest. According to him, the FTX case didn't set a precedent because major bankruptcies and collapses in the industry are nothing new, they happened earlier this year and in the past, such as in the case of MT.Gox.
Of course, the situation with the bankruptcy of one of the largest cryptocurrency exchanges is not the norm, the expert said. But one should not give up on the crypto industry either, as the downfalls and failures of individual projects historically do not entail any special consequences.
He explained that the trend in the crypto market for the last year has been "bearish" and major negative events fit perfectly into the current cycle (the decline of digital assets began exactly one year ago). Given the volume of liquidations, investor sentiment and the situation in the mining industry, we can conclude that the current prices of cryptocurrency are unlikely to be observed for a long time, the analyst believes.
The virtual assets market continues to be under pressure from the monetary policy of global central banks, as well as risks of recession and the fall of classic markets, the expert reminds. But given the historical behavior of prices, cyclicality and growth in demand for cryptocurrencies from players who were expecting more favorable prices to buy, we are not far from the bottom, the analyst believes. Within a few months, prices could form the conditions for a global recovery, he believes.
The war between the largest cryptocurrency exchanges, FTX and Binance, showed how deep connections exist within the industry, said Cryptorg CEO Andrey Podolyan. He explained that it became clear how the processes in some companies consistently affect the processes in other companies.
In addition to the situation with the exchanges, the expert drew attention to the impact of the U.S. election results on cryptocurrency rates. According to him, the victory of the Republicans will have a positive effect on the stock and cryptocurrency markets, but this effect may have a delayed nature.
Now there are two scenarios, if the situation with FTX will develop negatively and no one will buy it back, the market could fall even deeper. Under the other variant, after the elections in the U.S. the industry will have positive news and the current market sinking is just an attempt to squeeze out the bulls before a strong uptrend.