The crypto community was dealt a significant blow when FTX, a digital assets derivatives exchange, and its associated entities collapsed. The fall of FTX has had a ripple effect on the industry as a whole, with many investors losing confidence in cryptocurrencies.
Pompliano tweets that the crypto industry is now “tainted” in the eyes of institutional investors. He goes on to say that the damage done to the crypto community’s reputation will be difficult to repair.
The loss of investor confidence in the crypto industry is a major setback, but Pompliano says it will only be a matter of time before Bitcoin becomes the dominant force in the market. He says that when the confidence game is over, investors will flock to Bitcoin because it is the only asset with a proven track record.
Pompliano’s tweet comes at a time when the crypto industry is facing an existential crisis. The FTX collapse has called into question the viability of the entire industry, and many are wondering if cryptocurrencies can ever recover from this setback.
Only a matter of time before Bitcoin becomes the dominant force in the market. He says that when the confidence game is over, investors will flock to Bitcoin because it has a proven track record.
He claims that the recent events have done irreparable damage to the industry’s image in the eyes of institutional investors. Pompliano says that he no longer has faith in cryptocurrencies because of how the FTX drama unfolded.
These are strong words from someone who is usually an advocate for Bitcoin and other digital assets. It will be interesting to see how the industry responds to Pompliano’s critique in the coming days.
What are technicals suggesting about BTC?
The technicals are suggesting that BTC is in extreme bearish territory. The MACD is deep in bearish territory, and the RSI is below 30. This suggests that BTC is oversold and due for a relief rally.
The Fibonacci levels are also suggesting that BTC is in bearish territory. The 61.8% Fibonacci retracement level of the move from $18,238 to $15,883 has been broken, and this suggests that BTC will continue to fall.
The 200-day moving average is also in bearish territory, and this suggests that BTC will continue to fall in the short term.
Overall, the technicals suggest that BTC is in extreme bearish territory and is due for a relief rally. However, the long-term trend is still bearish, and BTC will likely continue to fall in the coming days.
Conclusion
The crypto industry is facing an existential crisis. The FTX collapse has called into question the viability of the entire industry, and many are wondering if cryptocurrencies can ever recover from this setback.
