Analytics
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Cryptocurrency sector analyst Vetle Lunde from Arcane Research has published a monthly market review for November 2022. He noted that this month was extremely painful for the industry. In his opinion, the recovery of the sector will take time due to long-term reputational consequences.
He noted that in the last week, the correlation between the Bitcoin (BTC) rate and the shares of leading US technology companies has softened, but the next week will show whether the fall in this indicator is a pattern or an accident.
The expert emphasized that December 13 and 14, 2022 will be eventful and will become indicative days for the future of the crypto market. It is on this day that new data on the US consumer price index will be published and the final press conference of the Federal Open Market Committee of the US Federal Reserve (FOMC) will be held.
Lunde noted that the collapse of FTX is likely to affect Bitcoin quotes in the medium and long term. However, the effects will not be universally unfavorable as there are already trends among traditional financial giants looking to invest in infrastructure due to the undervaluation of many projects.
The bankruptcy of FTX will also have a regulatory and reputational impact on the crypto market, limiting the performance of virtual assets in the near future. It will take time for industry participants to recover from the shock and adapt to the changing structure.
Institutional investors have already shown their interest in the cryptocurrency industry amid the current situation. Goldman Sachs announced that it sees interesting business opportunities arising from the fall in stock prices of many organizations. In the past, Citadel, Schwab, Nasdaq and Fidelity have reported increased levels of interest in their own presence in the sector.
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