Headed To Oblivion $800 Billion Crypto Price Shock Sparks Fears Of Catastrophic End For Bitcoin And Ethereum

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BitcoinBTC and crypto markets suffered an almighty crash following FTX’s shock implosion with President Joe Biden issuing calls for game-changing crypto rule changes.

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Bitcoin price has dipped below $15,500 per bitcoin while ethereum price is slipping towards $1,000 per ether (despite Elon Musk posting a startling price prediction for 2023).

Now, as the combined crypto market dips below $800 billion for the first time since late 2020 and from $3 trillion at the same time last year, the award-winning economist Nobel Paul Krugman has warned that the bitcoin and crypto industry could be “heading into oblivion”.

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“It’s hard to see what advantage these companies would have over regular banks,” the Nobel laureate and retired Princeton professor wrote in a New York Times NYT column that asked if this was “the end” of the cryptography.

“Even if bitcoin’s value does not go to zero (which it still could), there are strong reasons that the crypto industry, which was so prominent just a few months ago , is heading towards oblivion.”

The collapse of FTX, following a brief tussle between FTX founder Sam Bankman-Fried and chief executive of rival exchange Binance, has left the bitcoin and crypto industry reeling , with rumors that other major companies may be on the verge of following FTX into bankruptcy.

The sudden collapse of FTX also sparked calls for regulation that would better protect crypto users after many users lost access to their crypto funds on FTX and other crypto companies which were forced to suspend. withdrawals to weather the storm.

Last week, as US President Joe Biden led the G20 calling for tougher global crypto rules, US Treasury Secretary Janet Yellen said the fall of FTX “demonstrates[s] the need for more effective oversight of cryptocurrency markets,” adding that the same protections offered in traditional markets should apply to crypto-assets.

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Many in the bitcoin and crypto space have also called for regulatory clarity to better protect customers and weed out bad actors.

“If crypto is to survive, we will need some agreed-upon form of regulation that emanates from industry and is overseen by regulators such as the United States Securities and Exchange Commission (SEC) and Federal Deposit Insurance. Corporation (FDIC), to ensure that the proposed standards are maintained,” said Anna Becker, managing director of bitcoin and crypto trading platform EndoTech, in comments via email.

“Strengthened regulation is an urgent matter and must be established immediately. For retail investors, who are not as knowledgeable about risk as professional investment firms, they deserve worthy oversight, guidance and risk disclosure. trust.”

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