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After Bitcoin’s Worst Week in Five Months, Here’s What Crypto Analysts Are Saying

Bitcoin (BTC) fell 22% in the seven-day stretch through Sunday, and analysts are scrambling to assess the outlook – for digital-asset markets as well as possible policy ramifications amid an annus horribilis for the blockchain industry, freshly wounded by the FTX scandal.

As a new week starts, the market is still searching for a bottom: The CoinDesk Market Index (CMI) is down 0.8% over the past 24 hours.

Here’s a sampling of the commentary:

Sean Farrell, head of digital-asset strategy, FundStrat: “In the past six months, we have witnessed the unraveling of a web of leverage that entangled the crypto space. It started with LUNA/UST, seemingly resolved in the 3AC unwind, only to find that SBF now appears to have been insolvent as well…. We think it is appropriate to wait for lower lows as there is good reason to think that there will be other casualties, which could lead to forced selling or, at the very least, bad headline risk.”

Joe DiPasquale, CEO of BitBull Capital: “The last few days have seen the space shaken by the collapse of SBF’s empire, and expectedly, despite traditional markets showing some strength, BTC and crypto took a hit due to poor sentiment. Even though BTC has settled around $16,000 for now, the extent of the damage to other companies, funds, exchanges is as yet unknown, and may come to the fore in the weeks to come. As before, we believe BTC under $20,000 is an attractive long-term accumulation zone, but we also remain cautious until the current situation is satisfactorily resolved and sentiment appears to start moving toward relative normalcy. Notably, the last few days have seen a significant drop in exchange reserves for BTC and stablecoins, indicating a lack of trust and prevalence of fear in the market. We will be monitoring for signs of returning confidence among the masses as a positive indicator.”

David Duong, head of institutional research, Coinbase: “The relative crypto market stability of recent months was interrupted…. We have seen broader market instability despite some positive macro developments for risk assets as a…

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