The onset of Q4 did bring in hope for crypto investors. However, with eleven days down the road already, not much action has been seen on the price front. Bitcoin, the largest crypto, was trading at the brink of $19k, while Ethereum had already dropped below $1.3k at press time. Most alts followed suit and as a result, the global crypto market cap was roughly down 2.28% on Monday.
Opining on the state of the market in a recent Bloomberg interview, and why the current conditions have a silver lining, Bitwise CEO Hunter Horsley said,
“It’s been a tumultuous year in markets broadly, and certainly, in crypto. The story of this year is definitely a bear market… While there are opportunities to make money in many moments of the crypto market, bear market moments are the moments where fortunes can be made.”
Going forward, however, the tables might turn. The crypto market has always operated in cycles and after every sluggish phase or bear run, recovery has prevailed. Elaborating on what could likely be expected based on past 4-year cycle precedents, the Bitwise executive said,
“2014, the market was down almost 60%. 2018, the market was down by north of 70%. And this year, the market is obviously down, in 2022, around 60%. The expectation if the market continues its historical trend, would be that we began the new cycle next year.”
The Web3 aspect
Alongside the crypto space, the broader Web3 space has also been growing. To tap into the said trend and give investors access to companies “positioned to benefit” from Web3 growth, Bitwise launched a Web3 ETF at the beginning of October. Despite being in a recession, the launch of the product obliquely advocates the fact that investors will likely jump on board. Horsley said,
“We work with over a thousand financial advisors, branches, and institutions. And what we saw with Web3 was an emerging category of opportunity around the established innovators, established companies for a position to benefit from the rise of web3, from the environment created by crypto.”
Geographically, the United Arab Emirates has become one of the most popular destinations in the world for crypto and Web3-related businesses. The government’s crypto-friendly approach has seen ample success in attracting new-age businesses and entrepreneurs. In fact, as highlighted in an article yesterday, the UAE houses over 1,450 active Web3 organizations.
Read More: UAE Continues Crypto, Web3 Dominance: Report
On C-suite changes
On one hand, the market conditions have been turbulent. On the other, top-level executives have been stepping down one behind the other. Right from OpenSea’s Chief Financial Officer’s exit, to Kraken, Celsius, FTX, and Alameda executives calling it quits, the “Great Crypto Resignation” has plagued the space.
Read More: ‘Great Crypto Resignation’ continues as OpenSea CFO resigns
The same, however, is ‘healthy’ per the Bitwise CEO. Elucidating on why, he said,
“Zooming out, it’s a difficult time in the economy, and Crypto is not bigger than that. It’s not excluded from that. And in fact, crypto is more volatile in general. So I think it is natural you would see adjustments with firms in the space.“
With respect to C-Suite changes specifically, he added,
“I think [players changing] is a healthy part of progression and maturation of the space.”
Also Read: How Many Crypto Industry CEOs Resigned in 2022?