The collapse of FTX has shocked the cryptocurrency industry. The price of Bitcoin and other major digital coins plummeted after a problem with FTX.
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According to investment analysts at AJ Bell, there is “no sign of spillover” from cryptocurrencies to traditional assets.
Billions of dollars were lost when exchange FTX collapsed, raising questions about whether moves in the crypto space could bounce off other financial systems.
“There’s a lot of money in cryptocurrency, but it’s kind of built as a separate ecosystem,” investment analytics head Rais Khalaf told Squawk Box Europe on Wednesday.
However, that doesn’t necessarily mean there won’t be future duplicates.
“If there is a system-wide problem, it can affect other assets,” says Khalaf.
In two separate court filings, FTX lawyers said it likely had more than 1 million creditors in November, with $3.1 billion in debt to its top 50 unsecured creditors. rice field.
The exchange’s founder and former CEO, Sam Bankman-Fried, was charged with defrauding investors on Tuesday after being arrested on Monday.
Khalaf has been reluctant to predict where it will go next, as cryptocurrencies are highly volatile assets.
“We may be sitting here talking about this time next year. [Bitcoin] It could be $5,000 or $50,000. I wouldn’t be surprised as the market is very sentiment driven,” Khalaf said.
And while there are doubts about the long-term adoption of cryptocurrencies, Khalaf made one point with a lot of certainty.
“For the time being, [cryptocurrency] It remains a highly volatile and speculative asset,” he said.