Although the crypto market is going through a difficult phase, the core systems are working well, Giles Keating, director of crypto-financial services provider Bitcoin Suisse, told CNBC.
In an interview earlier today, Keating said major cryptocurrency blockchains such as Bitcoin (BTC) and Ethereum (ETH) were not experiencing any issues. He added that the recent market rout is the result of the collapse of stablecoin TerraUSD (UST) and decentralized finance (DeFi) platforms.
Keating’s sentiments come after the crypto market crashed on Saturday, June 18, before correcting higher on Sunday. The crash saw BTC trade below $17,800 before bouncing back. At press time, the flagship crypto is trading at $20,495.25.
In contrast, ETH dipped below $900 on Saturday. Like BTC, the coin has recouped its losses from Saturday and is currently changing hands at $1,127.53.
Commenting on the performance of the crypto market over the weekend, Keating said the market is close to a point where some excess real leverage has left the system and a bottom can now begin. to form.
Referring to yesterday’s double-digit gains in BTC and ETH, Keating said they signal the end of major selloffs in the crypto market.
Experts Say Bears Are Not Finished With Crypto
While Keating thinks the crypto market is bottoming out, Valkyrie Investments CEO Leah Wald thinks the nascent asset class is still in a bear market. In an interview with CNBC, Wald said BTC found support just below $20,000.
According to her, it makes sense that BTC found support below $20,000, as this is the same level that most institutional investors boarded the crypto bandwagon. She added that “these market players” will do whatever they can to keep their trades from sinking.
Wald said recovering the crypto space would likely take longer as confidence in the industry has been shaken.
She gave the example of crypto hedge fund Three Arrows Capital (3AC), which failed to respond to margin calls, forcing lenders to liquidate it. Additionally, Wald spoke about Celsius – which appears to be insolvent – saying the platform’s impact is significant as it was a lender to many retail and institutional investors.
Like Wald, Dan Ives, Managing Director and Senior Equity Analyst at Wedbush Securities, believes the crypto winter is not over yet.
Addressing the FinancialTimesIves said:
It’s a dark winter ahead for crypto as the era of free money comes to an end with another brutal sell-off across the board this weekend. Risky assets are all thrown out the window.