The director of the precious metals royalty and streaming company Metalla Royalty has warned of impending bankruptcy among crypto-based organizations.
The market for cryptocurrencies in 2022 has been damaged by reduced pricing, which has contributed to the failure of a number of companies in the face of persistent unfavourable circumstances.
This line is from E.B. During an interview with Kitco News on November 26, Tucker, the director of precious metals royalty and streaming business Metalla Royalty, warned of potential bankruptcy for crypto firms.
According to Tucker, crypto business bankruptcies do not indicate the demise of the industry, since the present status is mostly the result of excessive speculation.
Notably, his remarks come at a time when the cryptocurrency business has been hit by high-profile bankruptcies, with the FTX exchange being the most recent. In fact, the FTX case has had a ripple effect, with several affiliated businesses facing the possibility of insolvency.
Prior to that, the crypto lending site Celsius Network declared bankruptcy after the suspension of customer withdrawals. Tucker argued that such events should not be unexpected.
In addition, the bankruptcies have contributed to the prolonged bad market for cryptocurrencies, which has been fueled by macroeconomic issues such as excessive inflation. Concurrently, the inflationary climate has prompted worries about a future recession.
Bitcoin (BTC) has fallen short of expectations as a hedge against inflation and a potential substitute for gold, given the current market circumstances. Tucker predicts that gold will rise and reclaim previous highs before the end of the year, while Bitcoin consolidates below $17,000.
The director stated that gold would certainly break out by the beginning of 2023, stating that the precious metal might reach $2,070 to match past highs. He predicted, however, that gold will conclude the year on a dismal note.
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