Why BitMart and BitMEX Shutdowns Have Analysts Calling a Bottom
The BitMart and BitMEX shutdowns have drawn bullish reactions, with analysts calling the closures a healthy reset.
BitMart began winding down on Sunday, three days after BitMEX confirmed its own exit. AscendEX closed on July 1, bringing the total number of exchange closures this month to 3.
How Analysts Read the BitMart and BitMEX Shutdowns
Moonrock Capital founder and managing partner Simon Dedic argued that the recent closures of several centralised crypto exchanges reflect deeper flaws in the industry's business model.
"The extraction model has a fatal flaw: it needs a steady supply of victims. When those dry up, so does the business. One of the underrated perks of a brutal bear: the market is actually healing," he noted.
Ran Neuner, CEO of Crypto Banter, made a cycle-timing argument instead. According to him,
"Bottoming is a process. It's a process where the market consolidates and the fittest surviveโฆ The next cycle will be dominated by licensed exchanges and institutional capital."
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