Cointelegraph’s Crypto Buying and selling Secrets and techniques podcast has printed Episode 6, masking an array of content material that ought to pique the curiosity of cryptocurrency merchants. This episode’s visitor is Brian Krogsgard, often known as Ledgerstatus on Twitter. Krogsgard is a dealer and one of many co-founders of Flip.xyz, a nonfungible token (NFT) platform. He’s additionally a podcaster within the crypto area.
Among the many questions fielded in the course of the Feb. 16 recording, host Benjamin Pirus requested Krogsgard to offer his opinion on what he thinks has most impacted the worth of Bitcoin (BTC) over the previous 12 months. “Liquidity,” he responded.
“Folks simply shouldn’t have spare liquidity for a large number of causes. They’ve counterparties that went bankrupt, and that may have compelled them to lose cash. They obtained cash caught on locations that went bankrupt. Misplaced entry to them, misplaced in buying and selling, misplaced due to taxes, no matter.”
“These are all challenges for liquidity, and also you want liquidity for the healthiest of markets, and in order that’s been a problem,” he added. Amid the runaway practice that was the 2022 crypto bear market, the area noticed vital turmoil. Several cryptocurrency companies failed, together with the likes of crypto trade big FTX.
“I’d truly say the issues go method earlier than that with Bitcoin as a result of we noticed with FTX there was large rehypothecation of Bitcoin,” Krogsgard continued. “Rehypothecation” is when entities use clients’ collateral for different actions, according to Investopedia. The collapse of FTX in November 2022 sparked quite a few headlines, similar to allegations of customer asset misuse by FTX and sister entity Alameda Analysis.
“So, the Bitcoin folks thought they’d on FTX was not there, and FTX was promoting it to do different issues. And that rehypothecation was truly a burden to Bitcoin’s value even in a bull market. And now that we now have liquidity points, it’s simply been a constant form of drag on value and offered challenges for a 12 months after which some.”
Krogsgard supplied his ideas and opinions on a number of different factors in the course of the episode and in addition chatted about his background.
Take a look at this and different episodes from Cointelegraph’s Crypto Buying and selling Secrets and techniques podcast on Cointelegraph’s podcast page, Apple Podcasts, Spotify, Google Podcasts or TuneIn.
The views, ideas and opinions expressed listed here are the authors’ alone and don’t essentially replicate or signify the views and opinions of Cointelegraph.
