Analysts continue to make predictions about future prices in crypto markets, after the bankruptcy of FTX. While some expect a drastic drop, others predict a slight drop followed by a sharp rise. Check out the recent prediction from a crypto trading firm.
A period of volatility followed by a rise
Jonah Van Bourg, head of trading at crypto firm Cumberland, shared his impressions of the new industry on December 12. He showed himself relatively optimistic about the future of crypto. He stated : “By 2023, the sources of market recovery will be linked to adoption. Amid a weaponized dollar, China and Russia are quietly deregulating bitcoin and increasing its geopolitical relevance“.
Cumberland expects there to be “a period of volatility as the market repositions and Web3 business models recalibrate“. The crypto company argues that it is likely that the period of volatility is followed by an uptrend.
Jonah Van Bourg indicated that blockchain technology is increasingly being adopted by major players. He explained : “Big tech companies with billions of users continue to integrate blockchain technology“.
He added that cryptos have managed to gain popularity thanks to their volatility. According to him, the lattercaptured the attention of all investors, whether retail or institutional“.
LUNA and FTX: real blows for the industry
Jonah Van Bourg of Cumberland said:After the euphoric highs of 2021, markets have spent most of 2022 realigning to more restrained tech valuations. LUNA and FTX served as accelerators, taking the oxygen out of lending markets and forcing liquidations into a vacuum“.
The trading manager believes that the market is often “facing a crypto deficit, not a surplus “. “FTX, Alameda, and a wide array of insolvent lenders wouldn’t have sought Chapter 11 protection if they hadn’t already sold all of their liquid assets in a last-ditch effort to extend the runway.“, he remarked.
Van Bourg believes that adopting of the blockchain will be fundamental for an upward trend in the market crypto in 2023. According to him, a wide adoption of crypto will be possible thanks to the companies which will embark their customers on the blockchain.
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