On November 2, CNBC interviewed Tezos blockchain co-founder Kathleen Breitman during the Web Summit conference in Lisbon, Portugal. The cryptocurrency industry expert talked about the bear market. She gave her opinion on the fact that we are close to the end of the bearish trend in the crypto market. She also spoke about the responsibility of venture capitalists in continuing the crypto winter.
The downward trend in the market will continue even more!
According to CNBC, during her interview, the co-founder of Tezos (XTZ) declared that the crypto winter will continue and get worse. Kathleen Breitman indicated that venture capitalists have helped the accentuation of the fall in prices in the crypto market. According to her, “easy moneythat these companies have invested in order to make a profit has not helped the crypto sector. There is also the action of interest rates which were weak. For Breitman, these two factors have superficially increased the valuations of several cryptocurrency companies.
The co-founder of the Tezos blockchain has precisely declared : “There was a lot of easy money coming into the system and I think that was artificially fueling a number of different things, mainly the valuations of these companies“. She suggested that rising interest rates have exposed the weaknesses of these companies.
Kathleen Breitman donated the example of the main NFT marketplace OpenSea. Indeed, the trading volume on the platform fell to 349 million dollars in September 2022, while it was 2.9 billion dollars in September 2021.
Useful cryptos will do well
According to economists, next year the Fed will pause its policy of raising US interest rates. Some analysts believe that this measure will allow a recovery of the crypto markets. But, for Kathleen Breitman, it won’t be that simple.
Tezos blockchain co-founder believes there will always be a shake-up in crypto valuations. She added: “I think what you will find is that things that are useful will prosper“.
For the Tezos blockchain co-founder, the crypto winter is not over as investors hope. Kathleen Breitman expects another phase of price collapse in the market. She believes that only the small minority of cryptocurrencies that are truly useful to consumers will succeed.
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