The Bits of Gold Co-Founder, Youval Rouach said that more crypto companies are likely to collapse due to current market conditions. Rouach said that following such a strong rally in Bitcoin , some room for corrective weakness was bound to take place.
Although we are in a bear market, Rouach does believe there is room for recovery. We have seen in the past that downtrends are often followed by uptrends.
Rouach also mentioned that every four years there is a repetitive cycle, strong gains followed by heavy selling. When the crypto markets are in a bullish momentum, all the fraudulent activity that is taking place is largely ignored.
However, in a bear market, all fraud and struggling projects are suddenly given more weight than in a bull market.
Due to BTC's current levels, more companies announced that they are accepting Bitcoin as a payment method. Rouach added that wide adoption of the cryptocurrency is beneficial for Bitcoin's future.
Bits of Gold New Funding Round
When asked about decentralized exchanges (DEX) versus centralized exchanges (CRX), Rouach said that CEX will remain superior in terms of trading volumes. When regulations are implemented, if a certain DEX receives regulatory approval, it may contribute to higher volumes but CEX will remain firmer.
Bits of Gold is planning to expand its operations overseas. A new funding round will take place by Bits of Gold to ensure the company is on track to obtain its international goals.
One Zero (OZ), an Israeli digital bank is in negotiation with Bits of Gold for offering the broker's services to its clients. For Israelis that trade via Bits of Gold, the broker will take care of all the required taxation in accordance with Israeli law.
The fact the broker is ensuring tax is paid on behalf of its clients is a major benefit. A similar structure overseas such as in Europe for example may appeal to many crypto traders.
Crypto Markets Today
The Fed monetary policy will be announced today. A 75bps rate hike is expected. Due to BTC's current correlation to US indices, volatility is expected across numerous cryptocurrencies .
In the event Bitcoin is heavily sold and remains at low levels in days to come, further layoffs may take place and under-capitalized exchanges may plead for financial support.
