The collapse of cryptocurrency prices in 2022 sowed doubts in many people about how sustainable the crypto sector was. However, the CEO of Bakkt, a company that operates a digital asset management platform, is of the opposite opinion. At least three large crypto lending companies closed deposits and withdrawals after the fall of the algorithmic stablecoin UST.
In addition, there were losses of billions for institutional and retail investors, not counting a huge number of properties and companies suffering from collateral effects. During an interview with Yahoo Finance, Gavin Michael, CEO of Bakkt explained that “Cryptocurrencies are not going to disappear.”
Despite the setbacks that the crypto market may be experiencing, according to Michael, it is here to stay. In addition, he explained that institutional investors and retailers are beginning to understand market valleys and fluctuations.
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According to the CEO of Bakkt: “Cryptocurrencies are not going to disappear,” what will happen?
Despite the chaotic panorama that was experienced in the first half of the year, Michael remains firm and even weighs a very optimistic outlook for 2023. The expectations of a rebound of some investors convince the CEO of Bakkt. They expect an incredible rebound in 2023 that will allow them to recover the losses of the beginning of this year.
Michael comments: “There is still a lot of interest and momentum with our partners, many of whom are multinational companies, so they have been watching this space for a long time». According to the CEO of Bakkt now investors: “Given the peaks and troughs we’re seeing, we’re also seeing that consumer interest in cryptocurrencies remains solid.”. This is a valid perception, although the estimates of many other analysts are less optimistic.
In either of the two situations that arise, the CEO of Bakkt clarified that the company expects to activate its “crypto services in the second half of the year, and we will see a significant increase until 2023». Bakkt it currently operates a cryptocurrency trading platform for institutional investors and has major alliances.
Recently, the company announced a partnership with Visa to offer crypto debit and credit cards. On the other hand, it already had, before this, a contract with Mastercard to offer rewards with cryptocurrencies in its loyalty programs.
Skepticism about the fall
Although Bitcoin seems to have recovered, it lost its small uptrend this week. Currently, BTC is trading at $21,418 struggling to maintain the $21,000 support and the outlook does not seem very clear. Some Bitcoin skeptics like economist Peter Schiff are of the opinion that it is just a respite.
For Schiff, cryptocurrencies rose and this allowed investors to recover a little from losses and permeate the damage. However, Schiff is of the opinion that the price of Bitcoin will begin to plummet again and cause a bloodbath in the crypto market.
This situation could cause another massive bankruptcy like the one we saw when the sell-off caused the bankruptcy of Voyager Digital and Celcius Network. These crypto-lenders were the first to paralyze deposits and withdrawals citing instability in the market. This forced companies like Coinbase to restructure their business model based on the losses caused by the huge price drop and the collapse of UST.