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Marcus Sotirio, an analyst on a listed digital asset broker GlobalBlock
Bitcoin fell about 5% last weekend. This week started at about $ 20,500 at the time of writing. The crypto market continues to decline as concerns about the onset of recession grow.Google search volume recession It has skyrocketed in the last few weeks.
A June employment report released last week showed that high wage increases and strong employment increased the likelihood of a recession. This is to bring about a more aggressive Federal Reserve that must fight to minimize domestic inflation. A recession usually means that the price-earnings ratio (what the investor is willing to pay for the stock in consideration of its earnings) is compressed and the stock price can fall. Therefore, the current correlation is high, which affects cryptocurrencies.
Within the crypto ecosystem, concerns about the liquidity crisis are diminishing. Justin SunThe founder of the TRON Protocol, one of the largest blockchain networks, said he was ready to join Sambankman Fried, which provides financial support to crypto companies suffering from liquidity issues. .. Sun said it could spend up to $ 5 billion on acquisitions after several companies turned to him for help.
Sam Bankman-Fried’s FTX already provides support for Voyager Digital and BlockFi, and Binance CEO CZ is a 50-100 cryptocurrency company because the exchange has “the largest cash reserve in the industry”. Claims to seek help. Sun claimed that similar numbers were also in contact with TRON.
According to the TRON website, their DAO has a reserve of $ 2.3 billion. “Our interest is in platforms with a large user base, both CeFi and DeFi platforms,” said Sun. Mr Sun said he believes the worst of the current market downturn is behind us. He states: “I think the de-leveraging process is over the worst time right now, so we need to clean up and move forward. I don’t think [the] Of course, the market will be very bullish. The macroeconomic environment may mean that the liquidity crisis will last longer as the Federal Reserve is forced to respond to sustained high inflation and continue to draw liquidity.
