Coinbase: FTX Crisis May Extend Crypto Winter Through 2023

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Experts at the American crypto exchange Coinbase believe that the collapse of the FTX exchange affected too many companies - this will prolong the crisis in the cryptocurrency market for at least another few months.

Coinbase published the Long Winter reportwill be even longer,” in which the company’s analysts studied the consequences of the collapse of the FTX crypto exchange on the cryptocurrency market. According to experts, the liquidity crisis of the third largest crypto exchange in the world will definitely extend the crypto winter - experts believe that until the end of 2023.

The study highlights that investmentMany institutional investors in FTX are stuck on the platform. This will cause a lot of mistrust not only in those associated with the crypto exchange, but also in the entire industry as a whole. Analysts note that stablecoin dominance has reached a new high of 18%, indicating the protracted nature of the crisis.

What is happening means that crypto market participants are selling their digital currencies and withdrawing funds into dollar-pegged stablecoins to wait out the crypto winter. 

The fact that FTX filed an application forbankruptcy, experts say, is definitely positive, but the number of companies associated with FTX or its subsidiary Alameda Research is really large - some issued loans to the crypto exchange, others simply invested money. 

Correcting the situation and regaining the trust of users and investors will require at least several more months of work, analysts say.

It was previously reported that institutionalinvestors began to become disillusioned with cryptocurrencies even before the collapse of the FTX exchange, but the bankruptcy of such a large company could forever erase the prospects of digital currencies among traditional finance market participants.