Researchers from Coinbase Research predict that the cryptocurrency winter will last for several more months, and possibly until the end of 2023. As analysts note, despite the summer market crisis, the cryptocurrency industry was mostly unaffected by sharp fluctuations in cryptocurrency rates. However, the difficult relationship between the largest cryptocurrency exchange Binance and FTX quickly put an end to this and the cryptocurrency market faced a high level of volatility. Experts suggest that the recent market turbulence and the lack of large investors to invest in digital assets could prolong the already long cryptocurrency winter.
Coinbase analysts note the dominance of stablecoins in the market — it has grown to 18% of the total capitalization.
Considering the number of bitcoins that are being withdrawn from exchanges at this time, it is not surprising that Coinbase Research focuses on the growth of volatility up to 66%. Before the beginning of the problems with the FTX crypto exchange, the volatility of VTS actually kept its indicators at the level of the last two years — as of the end of October, it reached 27%.
The rise in the cost of energy and the decline in the BTC rate have created a difficult situation for Bitcoin miners. The average electricity price per kWh in the US is currently around $0.10, meaning that the only operators in the US who are able to mine profitably are forced to use only the newest and most expensive equipment or look for cheaper electricity alternatives.
Experts summarize: the events surrounding FTX have undoubtedly undermined investor confidence in digital assets. In addition, increased regulatory policies in the US caused inflation for the rest of the world. The strengthening of the dollar also made it difficult to hold long positions in the cryptocurrency. To fix the situation at the global level, it will take a long time, which may cover the whole of the next year.
Coinbase analysts note the dominance of stablecoins in the market — it has grown to 18% of the total capitalization.
Considering the number of bitcoins that are being withdrawn from exchanges at this time, it is not surprising that Coinbase Research focuses on the growth of volatility up to 66%. Before the beginning of the problems with the FTX crypto exchange, the volatility of VTS actually kept its indicators at the level of the last two years — as of the end of October, it reached 27%.
The rise in the cost of energy and the decline in the BTC rate have created a difficult situation for Bitcoin miners. The average electricity price per kWh in the US is currently around $0.10, meaning that the only operators in the US who are able to mine profitably are forced to use only the newest and most expensive equipment or look for cheaper electricity alternatives.
Experts summarize: the events surrounding FTX have undoubtedly undermined investor confidence in digital assets. In addition, increased regulatory policies in the US caused inflation for the rest of the world. The strengthening of the dollar also made it difficult to hold long positions in the cryptocurrency. To fix the situation at the global level, it will take a long time, which may cover the whole of the next year.