US-based cryptocurrency exchange Coinbase has suggested that the crypto winter could last until the end of 2023 as the FTX bankruptcy and the dollar remain strong.
In a recent report published on the Coinbase official website, the FTX bankruptcy has shown the effect of investors on the cryptocurrency sector. to undermine your trust stated why. The company stated that it may take several months to rebuild confidence in the market, so the crypto winter may be a little longer.
On the other hand, the stock market reported that the possibility of a high recession likely to occur in the first quarter of 2023 is also a scenario that should be taken into account by “traditional risk assets”.
According to the information in the report, with the decrease in leveraged transactions in May and June of 2022, the market healthier As the FTX bankruptcy made an appearance, the positive picture emerged. it overturned. However, the cryptocurrency market is largely The US Federal Reserve’s (Fed) interest rates It is expected to take a position according to the path it follows.
On the other hand, the report states that the USD’s tendency to remain strong despite the fact that the “strong dollar” makes it difficult to invest in risk assets, given that other countries inject liquidity to stimulate their economies. has become brittle claimed.
Considering the process of restoring lost trust in the cryptocurrency market over time and increasing interest in risk assets, the company has seen that the crypto winter towards the end of 2023 He suggested that it might come to an end.