The cryptocurrency market scene in 2022 has been impacted by depressed prices, which has partially translated into several entities going bankrupt amid the sustained bearish conditions. Metalla Royalty director warns most crypto entities to go bankrupt and says gold will hit $2000 by 2023.
In this line, E.B. Exhaust, the overseer of valuable metals sovereignty and streaming firm Metalla Eminence has cautioned of additional looming liquidations for crypto elements, he said during a meeting with Kitco News on November 26.
Tucker asserts that the crypto industry’s bankruptcy does not mean it will disappear, noting that excessive speculation is primarily to blame for the current state.
The majority of these crypto-related businesses will fail. Therefore, this does not mean that crypto ceases to exist; It simply indicates that the speculation was so out of control that you were actively betting, leveraging, hoping, and gambling. He stated, “The hangover is going to be intense.”
Notably, his remarks come at a time when the cryptocurrency market has been hit with high-profile bankruptcy cases, the FTX exchange collapse being the most recent example. In point of fact, the FTX case has caused a ripple effect, with other associated businesses facing bankruptcy.
Before that, the crypto lending platform Celsius Network halted user withdrawals and declared bankruptcy. Curiously, Tucker maintained that such occurrences should not come as a surprise.
“Each thing that takes place is like a complete surprise, but it is not. An adjustment is taking place here; A Fed coin will eventually be yours. Right now, a digital dollar payment system is being tested by the Fed; this month, there has been news about that,” he added.
In addition, the bankruptcy filings have contributed in part to the prolonged cryptocurrency bear market, which has been accompanied by the prevalent macroeconomic factors, including high inflation. At the same time, concerns about a recession have arisen as a result of the inflationary environment.
Gold will rise in 2023 Despite the circumstances, Bitcoin (BTC) has failed to live up to expectations of being an inflation hedge and a potential gold replacement. Tucker predicts that gold will likely rise and reclaim new highs by the end of the year as Bitcoin continues to consolidate below $17,000.
The director said that gold would probably make a comeback at the beginning of 2023 and that the price of the precious metal could reach $2,070, which would be the same as previous highs. He did, however, point out that gold would finish the year on a downbeat note.