The crypto space is enduring a lot of problems as of late, but according to one analyst – Edith Yeung, a general partner at Race Capital – things aren’t as bad as they seem, and we’re not yet in a crypto winter.
Edith Yeung Is Confident in Crypto
In a recent interview, Yeung explained:
In some sense, the ‘warm winter’ is basically going to push out everybody who really [wants to be] there for short-term gain.
The price of bitcoin has gone through one of its most up-and-down periods. The currency rose to a whopping $68,000 per unit last November, thus achieving a new all-time high, but things took an ugly turn soon after that, and now, ten months later, it appears the digital asset everyone has grown to love so much is struggling just to maintain a position in the low $20K range.
Furthermore, the overall crypto space has lost about $2 million in valuation as many other coins have chosen to follow in bitcoin’s failing footsteps, but while everyone is concentrating so hard on prices and the actual numbers that come with each of the world’s primary digital currencies, Yeung is choosing to focus on the many new crypto-based projects that have emerged in recent months such as web3, which she is extremely excited about.
She says that many of these projects are going to assist in gaining long-term wealth for investors, and that prices right now do not reflect the incredible things that traders and crypto fans alike can expect to see in the coming weeks. Yeung explained in her interview:
I think there’s a whole generation of internet [users who] really believe that ‘you cannot monetize my data anymore… The internet should be owned by us. That’s why there’s such a push with crypto because the ownership of Ethereum or Solana is really the user owning that token, which is only a piece of the internet.
Yeung has described the present conditions being faced by the crypto market as a warm winter, meaning we’re likely not in as much trouble as we think. While she’s confident the conditions aren’t as bearish as they might appear, other analysts are skeptical of her statements, with James Butterfill – head of research at Coin Shares – explaining:
Bitcoin prices have fallen by 74 percent [from] peak to trough at one point. This closely matches the 83 percent decline seen in 2018 and must be taken in the context that the market is significantly bigger and has a much broader investor base now than it had back in 2018.
What Will the Fed Do?
Yuya Hasegawa – crypto market analyst at Japanese crypto exchange Bit Bank – also threw his two cents in, saying:
I think the Fed will gradually have to face and address some signs of economic slowdown soon, so my mid-term outlook is somewhat optimistic.
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