How a deeper crypto crash in 2023 could spark a gold rush

Gold prices could surge in 2023 if the decline in digital assets, including Bitcoin, continues.

City experts are on the lookout for potential surprises in the upcoming year throughout the month of December. While their holiday warnings are not comprehensive forecasts, they frequently include the most enticing potential for market observers.Information Guide Nigeria

This year, Standard Chartered predicts that one of the most conventional wealth stores may be well-positioned to profit from the turmoil surrounding one of the newest global asset classes. The price of gold could surge in 2023 if the collapse of digital assets, including Bitcoin, continues.

The startling forecast follows a difficult period for crypto investors and exchanges, which are still feeling the repercussions of the stunning collapse of industry favorite FTX.

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Eric Robertsen, the bank’s global head of research and top strategist, constructs the following scenario in the bank’s yearly forecast of unlikely but not impossible “black swan” events.

“More and more crypto firms and exchanges find themselves with insufficient liquidity, leading to further bankruptcies and a collapse in investor confidence in digital assets. Gold sees a surge in demand from retail and institutional investors, as well as sovereign nations looking to shore up their reserves.”

Bitcoin has experienced a year of unprecedented change. In a year in which digital currency exchanges have collapsed, reputations have been gained and lost, and riches have evaporated at the quickest rate ever witnessed on world markets, we examine the price action of the most widely followed crypto coin.JAMB portal

The repercussions of the FTX crash are still being felt by crypto investors and crypto exchange operators.

In the past month, the price of Bitcoin has dropped by about 25 percent, and cryptocurrency lender Genesis has warned that it may be on the verge of insolvency. At least a dozen crypto firms have gone bankrupt or suspended customer withdrawals since the beginning of the year, sparking fears that the entire industry’s future is in jeopardy, with the potential to suffer the same fate as investment bank Lehman Brothers at the onset of the 2008 financial crisis.

Several cryptocurrency exchanges, such as Seychelles-based OKX, have been frantic to distinguish themselves from FTX, promising to back customer deposits with equivalent reserves and requesting third-party audits in an attempt to protect the industry’s deteriorating credibility. Financial regulators throughout the globe are frantically stringing together a slew of new legislation to rein in the cryptocurrency business.NYSC portal

However, some of FTX’s competitors appear to have received a modest lift as FTX’s former customers hastened to withdraw their assets and deposit them with more transparent crypto exchanges with a less nefarious image. They are adamant that the demise of a shady crypto company is only good news for the longevity of a trustworthy one.

“It’s possible that the full ramifications have yet to be felt,” said Tom Duff Gordon, Vice President International Policy at Coinbase, who said the firm had benefitted from increased activity in recent days as a result of a “flight to quality,” adding that it had a “de minimis” exposure to FTX.

“We’ve seen a bad actor and alleged fraud and that is not something that’s unique to crypto.

“There will be a short-term reduction in confidence for the sector [but] if this has the effect of removing some bad actors from the market… then I actually think we can come out of this stronger.”JAMB Result

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