Vijay Ayyar, vice president of corporate development and international at crypto exchange Luno, told CNBC that unless the price of bitcoin closes above $23,000 on a daily time frame basis, “the odds are this is a dead cat bounce.”
“We’re oversold, so a bounce was expected,” he added.
The focus in the crypto industry has shifted toward crypto lending companies that promise users high yields for depositing their digital coins. Last week, Celsius, a firm with 1.7 million customers and nearly $12 billion of crypto assets under management, paused withdrawal of funds for customers, sparking concerns that it is insolvent.
“When inflation is on the doorstep and with rate hikes in the offing, the risks of a recession round the bend are high,” Charles Hayter, CEO of CryptoCompare, told CNBC via email.
“The push me pull you of higher rates sapping cash from mortgaged house owners means people are psychologically bracing and paring back and digital assets are suffering thus.”
“Coupled with this, the pull back in the digital asset ecosystem has uncovered a number of systemic issues.”
