One of the oldest contrarian investing wisdoms is to buy when there is blood on the streets. If it were that easy, crypto investors would be elated at all the buying opportunities out there right now. If you’re agitated by the bear market, which has been especially brutal even by crypto standards, don’t beat yourself up about it.. Cryptocurrencies remain an untested asset class that operates in the shadow of regulators. I don’t blame you for not buying an asset class that is down more than 70% this year.
With those warnings in mind, a quiet pack of smart money investors believe now is the best time to invest in Bitcoin (BTC), digital assets and crypto infrastructure companies – even after FTX’s monumental collapse. Although nothing is confirmed yet, US investment giant Goldman Sachs is also noting that the cryptocurrency is priced even after the year-long bear market.
This week’s Crypto Biz explores Goldman’s crypto intrigue, a new cold wallet design from Ledger, Blockstream’s plummeting valuation amid the bear market, and the latest news surrounding Three Arrows Capital.
Goldman Sachs Seeks to Buy Cryptocurrency Firms After FTX Collapse
Goldman Sachs’ support for cryptocurrencies appears to be growing, even during the bear market, as the US investment giant appears poised to acquire struggling companies following the FTX collapse. In an interview with Reuters, Goldman executive Mathew McDermott asserted that cryptocurrency companies are “more reasonably priced” today than they were over a year ago and that calls to regulate the sector will ultimately be a positive catalyst for adoption.. Although FTX has become the “poster child” of cryptocurrencies, and not in a good way, the underlying technology of the sector “still works,” McDermott said.
‘Father of the iPod’ Helps Ledger Create a New Crypto Cold Wallet
The collapse of centralized platforms has been a boon for Ledger, the hardware company known for providing crypto cold storage devices. Following an influx of new orders for its Ledger Nano devices, the hardware company announced this week that it has teamed up with Tony Fadell, the inventor of the iPod Classic, to design its new wallet device. The new wallet, known as the Ledger Stax, is said to be about the size of a credit card and features a large e-ink display, wireless charging and Bluetooth compatibility. Remember: It’s not your keys, it’s not your Bitcoin.
Blockstream raises funds for mining at 70% lower company valuation
Blockstream, the Bitcoin infrastructure company, would be looking for new financing, but also acknowledges that it will not be easy in a bear market. The company led by Adam Back is willing to raise capital at a valuation of less than $1 billion, which is 70% less than its valuation of $3.2 billion in August 2021. According to Back, the additional funding will go toward scaling the company’s mining capacity. As Cointelegraph reported, Blockstream is working with Jack Dorsey’s Block to develop a solar-powered Bitcoin mining facility in Texas.
3AC Issues Summons as Dispute Over Terraform Dump Claims Grows
The discredited founders of Three Arrows Capital, Su Zhu and Kyle Davies, will have to hand over financial information related to their failed hedge fund, a federal judge has ruled. The approved subpoenas to be served on the founders require them to turn over any “recorded information, including books, documents, records and papers” in their custody related to 3AC’s financial affairs. Once valued at $10 billion, 3AC blew up following the infamous Terra Luna death spiral earlier this year. Despite their arrogance, Zhu and Davies found themselves embroiled in a series of horrendous operations that ultimately bankrupted their company.
Before You Go: Bitcoin Hits $17,000: Bull Trap or Relief Rally?
The Bitcoin price has been fairly stable over the past few weeks, even as the FTX contagion continued to spread. The leading digital asset topped $17,000 earlier this week, prompting cautious optimism that the worst of the market downturn is over. In this week’s Market Report, I sat down with Marcel Pechman and Joe Hall to discuss whether BTC can expect a relief rally soon. I also discussed the so-called “Santa Claus” rally, which many expect to take place later this month. You can watch the full replay below.
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