Coinbase: FTX’s Collapse Will Likely Lead to an Extended Crypto Winter

derailed an emerging positive situation in cryptocurrency markets after the significant deleveraging of May and June left few, if any large, marginal sellers in the digital assets space, Coinbase said in a research report Tuesday.

The new turbulence in the cryptocurrency market and the lack of large buyers has left the sector vulnerable, potentially extending what was an already longFTX bankruptcy proceedings will be closely watched, but for the digital assets sector, a lot still depends on the path of interest rates in the U.S, the report said.

The market is highly likely to see “second order effects” arising from the unraveling of FTX, as it emerges which counterparties have lent or interacted with either the exchange or its sister company, Alameda Research, and what those exact liabilities are, the note said. Coinbase says poor liquidity could last till at least the end of the year, noting that stablecoin dominance has risen to a very high 18% of the total crypto market cap, which itself has dropped to around $800 billion as of Nov. 12 from about $1 trillion at the end of last month.are a type of cryptocurrency whose value is pegged to another asset, such as the U.S. dollar or gold.

“The combination of increasing hashrate , rising energy costs and now weaker bitcoin prices has led to increasingly stressed economic conditions for bitcoin miners,” the note said.

coinbase FTX_Official willcanny99 Lower Volatility is better, less Liquidations in Perpetual Contracts

coinbase FTX_Official willcanny99 What's the silver lining in this _the_old_gamer_

coinbase FTX_Official willcanny99 The same cryto world had to bail this out. If not they will fall just the same.

coinbase FTX_Official willcanny99 Not great for people wanting their bags mooned, but great news for people wanting 12 months worth of accumulating

Coin Coin Latest News, Coin Coin Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Bitcoin, ether move higher as Goldman Sachs see negative outlook for CoinbaseCrypto prices were steady on Monday, with bitcoin and ether trading higher over the past day. Sounds like it's time to buy into $COIN then
Source: TheBlock__ - 🏆 464. / 53 Read more »

FTX downfall was a turning point for citizen journalism: Coinbase CEOThe CEO of cryptocurrency exchange Coinbase, Brian Armstrong, accused the New York Times of writing “puff pieces” on former FTX CEO Sam Bankman-Fried and suggests the FTX story has been a turning point for citizen journalism as it has mostly played out on Twitter. What ? It’s not journalism. It’s a lunch table with fascinating guests but not journalism by any interpretation. brian_armstrong This is incredible ggame modifier
Source: Cointelegraph - 🏆 562. / 51 Read more »