In this line, E.B. Tucker, the director of precious metals royalty and streaming firm Metalla Royalty has warned of more impending bankruptcies for crypto entities, he said during an interview with Kitco News on November 26.
According to Tucker, the crypto industry bankruptcies do not mean the sector will go away, noting that the current state is mainly due to excess speculation.
“Most of these entities associated with crypto will go bankrupt. So that doesn’t mean that crypto goes away; it just means that the speculation was so out of control that you had so much hoping and leveraging and betting and gambling going on. The hangover is going to be intense,” he said.
‘Bankruptcies not surprising’
Notably, his comments come when the crypto market has been hit with high-profile bankruptcy cases, with the FTX exchange collapse being the latest. Indeed, the FTX case has had a ripple effect, with other associated companies staring at possible bankruptcy.
Before that, the crypto lending platform Celsius Network filed for bankruptcy after halting user withdrawals. Interestingly, Tucker maintained that such occurrences should not be surprising.
“Each thing that happens is like a total surprise, but it’s not a surprise. There’s a readjustment going on here; you will eventually have a Fed coin. The Fed is testing a digital dollar payment system as we speak; there’s been news out on that this month,” he added.
Additionally, the bankruptcies have partly contributed to the extended cryptocurrency bear market amid the prevailing macroeconomic factors led by high inflation. At the same time, the inflationary environment has resulted in fears of a possible recession.
Gold to rally in 2023
Amid the prevailing conditions, Bitcoin (BTC) has failed to meet expectations of serving as a hedge against inflation and a possible replacement for gold. With Bitcoin consolidating below $17,000, Tucker projects that gold will likely rally and reclaim new highs by the end of the year.
The director predicted that gold could likely break out at the start of 2023, noting that the precious metal will potentially hit $2,070 to replicate previous highs. However, he noted that gold would end the year on a depressing note.
Watch the full interview below:
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