Coinbase: The bear market could last until the end of 2023!

Falling digital asset prices have shaken investor confidence. But while the market was starting to show some positives, the events surrounding FTX have negated all the efforts made so far. According to Coinbase, the bear market that is currently plaguing the markets could last longer than expected, since the news is not reassuring.

FTX files for bankruptcy and the bear market is growing

Since the beginning of the year, the crypto craze seems to have taken a hit. The market is not as booming as it used to be and most investors are pulling out. This fall is due to many factors, including inflation. Indeed, the performance of cryptocurrencies depends largely on the evolution of US interest rates.

Because of this, the strong dollar trend has a disastrous effect on crypto long positions. Additionally, the way financial markets have operated over the past few months is not helping allocators to deploy funds in a meaningful way. Constant stopping and starting is a plague for most asset classes.

Although digital assets have weathered wild price swings, the discord between Binance and FTX has changed everything. Indeed, the fall of FTX is a tragedy for the ecosystem. The latter turned what was just an emerging positive setup for cryptos into an extension of the bear market.

Thus, the bankruptcy filing of FTX is another factor that contributes strongly to the instability of the markets. From now on, the bankruptcy procedure of the exchange founded by Sam Bankman-Fried will be watched very closely. Note that most asset classes depend on changes in Fed interest rates. However, according to statements from Coinbase, it is still early to hope for a pivot from the US Federal Reserve. At least not until inflation really starts to come down.

Current events are hurting the miners of bitcoins (BTC). The major crypto’s volatility rose by 66%, and Ether (ETH) lost support. Considering all the unfortunate events surrounding FTX, Coinbase is confident that the already long bear market could extend into the end of 2023.

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