Elon Musk predicts a prolonged depression in the crypto market

The entrepreneur also advised storing digital assets in cold wallets

14.11.2022 - 11:00

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What’s new? Tesla and SpaceX CEO Elon Musk has predicted a prolonged decline in the cryptocurrency market. He wrote this under a post by investor Jason Calacanis, who asked what awaits bitcoin in 2023, given that it is currently trading 75,6% below its all-time high of $69 000 recorded in November 2021. Musk believes that bitcoin as an asset will survive, but it will take a long time for the rate to recover. A few days earlier, he also named two other cryptocurrencies that have a future.

BTC will make it, but might be a long winter — Elon Musk (@elonmusk) November 14, 2022

What other statements did Musk make? On November 12, the billionaire joined a discussion about the collapse of the FTX exchange on Twitter Spaces. The bankruptcy of one of the largest trading platforms caused a downturn in the entire digital asset market, but the entrepreneur said that bitcoin, Ethereum, and Dogecoin probably have a future. He also urged listeners to store cryptocurrencies outside exchanges, in cold crypto wallets.

In addition, Musk spoke highly negatively about former FTX head Sam Bankman-Fried, explaining that he spoke to him for about half an hour as part of the discussion about the Twitter purchase deal.

News on the Yahoo Finance website

In early November, analysts at DappRadar noticed an increase in the number of unique active wallets in the DeFi sector and decentralized apps. From September to October, the growth was 7 and 6,8%, respectively. Experts noted that such activity demonstrates the resilience of the industry to macroeconomic shocks and may be a sign of market recovery.

Later, analysts at JPMorgan said that the collapse of the FTX exchange could push bitcoin to fall to $13 000. And research firm Fundstrat suggested that high market volatility would bring the asset’s rate below $10 000.

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