Bitcoin Suisse Head Says Crypto Market Is Bottoming

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Although the crypto market is going through a challenging phase, core systems are performing well, director of crypto financial services provider Bitcoin Suisse Giles Keating told CNBC.

In an interview earlier today, Keating said that the core blockchains of cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) are not facing any problems. He added that the recent market crash is a result of the collapse of the TerraUSD (UST) stablecoin and decentralized finance (DeFi) platforms.

Keating’s sentiments come after the crypto market crashed on Saturday, June 18, before correcting higher on Sunday. The drop saw BTC trade below $17,800 before recovering. At press time, the flagship crypto is trading at $20,495.25.

On the other hand, ETH dipped below $900 on Saturday. Like BTC, the coin recouped its losses from Saturday and is currently changing hands at $1,127.53.

Commenting on the performance of the crypto market over the weekend, Keating said that the market is close to a point where some of the real excess leverage has exited the system and a bottom may now start to form.

Referring to yesterday’s double-digit gains in BTC and ETH, Keating said they signal the end of big sell-offs in the crypto market.

Experts Say Bears Aren’t Done With Cryptocurrencies

While Keating believes the cryptocurrency market is bottoming out, Valkyrie Investments CEO Leah Wald believes the emerging asset class is still in a bear market. In an interview with CNBC, Wald said that BTC has found support just below $20,000.

According to her, it makes sense that BTC found support below $20,000 because this is the same level at which most institutional investors jumped on the crypto bandwagon. She added that “these market participants” will do everything they can to prevent their trades from sinking.

Wald said that the recovery of the crypto space would likely take longer because confidence in the industry has taken a hit.

He gave the example of crypto hedge fund Three Arrows Capital (3AC), which failed to honor margin calls, forcing lenders to liquidate it. Additionally, Wald spoke of Celsius, which appears to be insolvent, saying the platform’s impact is far-reaching because it was a lender to many retail and institutional investors.

Like Wald, Dan Ives, managing director and senior equity analyst at Wedbush Securities, believes the crypto winter isn’t over yet.

Speaking to the Financial Times, Ives said:

This is a dark winter ahead for cryptocurrencies as the era of free money comes to an end with another brutal sell-off across the board this weekend. Risk assets are being thrown out the window.