Stefan Rust, CEO of Laguna Labs, says:
“While we are sitting at two-year lows today, there is undoubtedly more pain to come for bitcoin in what will likely be a final capitulation towards the bottom.
As far back as November last year, analysts were calling $12,000 as the bottom for bitcoin in the latest bear market rout. It seems that, while we all laughed at their pessimism then, this could be a good shout. Certainly, we have some very reputable analysts including those at JP Morgan predicting $13,500 as a bottom.
As many have pointed out, however, it is unlikely that the full force of the FTX fallout has yet been priced-in. It seems likely that a number of other prominent crypto institutions are now going to tumble, and as some of the industry’s biggest and most reputable, this is going to hurt.
To those in traditional finance and the mainstream media now calling an end to the crypto industry altogether, though: forget it. This is nothing more than wishful thinking from a sector that truly wishes that this challenge to its authority would simply go away. The difference between crypto and tradfi is that incidents like FTX, while extremely painful for investors, do take out the trash – no central banks come in to rescue bad actors at the cost of customers and taxpayers.
Another big positive to this is that it seems to be triggering a long-awaited decoupling from the main market. While the NASDAQ is enjoying two-year highs, Cryptocurrency is staring down two-year lows. This will be a welcome development for those that look to crypto currency as a portfolio diversifier and main market hedge. It will also be a relief to purists and “true believers” that are very interested in Cryptocurrency as an alternative to the existing financial system – one that is much more transparent and fair.
Indeed, while the pain of what is happening now is undeniable, the visibility with which things are unfolding should be applauded and will lead to valuable lessons learned. Once the shake out is done, the building can really begin towards the next big crypto bull run. And with macroeconomic conditions the way they are, this could finally be the one that sees crypto make it past 1 percent of global markets to real mainstream adoption.”
