Crypto expert reveals how long volatility in industry could last
The head of crypto and tokenization at Republic argues corrections are 'normal'
Crypto expert on what is causing volatility
The head of crypto and tokenization at Republic, Andrew Durgee, reveals what is causing the latest wave of volatility in the industry and what to expect moving forward.
Andrew Durgee, the head of crypto and tokenization at Republic, argued Monday that volatility is the "nature of the industry" and that it will continue - in large part fueled by current geopolitical events.
Durgee made the comments on "Mornings with Maria" Monday as cryptocurrency prices were regaining some of the losses from over the weekend - which saw Bitcoin dip below $40,000 - and as tensions between Russia and Ukraine mounted.
On Monday, Bitcoin was trading at approximately $38,963 (+1.61%), while rivals Ethereum and Dogecoin were trading at $2,736 (+3.42%) and 14 cents (.83%), respectively, according to Coindesk.
Bitcoin, which hit an all-time high in 2021 of $68,990, has dropped about 16% so far this year, according to data provided by Coindesk. Bitcoin had been struggling recently along with equities as the Federal Reserve sets out its roadmap to raise rates.
The Federal Reserve late last month signaled it could "soon" raise interest rates for the first time in three years, paving the way for a March liftoff as policymakers seek to keep prices under control and combat the hottest inflation in nearly four decades.
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Bitcoin started February, a seasonally strong month for speculative assets, in positive territory, as investors seemed ready to increase their exposure to risk assets, Coindesk reported.
Durgee noted on Monday that there has been a "series of rapid growth that’s taken place" in the space, assuring that corrections are "just going to be a normal part of the process."
Crypto expert argues volatility is the 'nature of the industry'
The head of crypto and tokenization at Republic, Andrew Durgee, argues volatility in the industry will continue, in large part fueled by current geopolitical events.
"As we see transactional volumes continue to rise, we see participation not only from the institutional side, but the retail market continues to grow," he continued.
"So we’re going to still continue to see volatility," he added, stressing that "a lot of the geopolitical events that are taking place right now certainly fuel a lot of that."
He went on to argue that volatility is "here to stay for a while," citing the "liquid nature of crypto and how easy it is to be able to transact with it and do trades."
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| COIN | COINBASE GLOBAL INC. | 304.64 | +9.41 | +3.19% |
| BITQ | BITWISE CRYPTO INDUSTRY INNOVATORS ETF - USD DIS | 20.74 | +1.04 | +5.28% |
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On Monday, Durgee also reacted to last week’s announcement that the Federal Bureau of Investigation is in the process of building a specialized team focused on the enforcement of crimes involving cryptocurrency.
Deputy Attorney General Lisa Monaco made the revelation in a speech at the Munich Cyber Security Conference in Germany on Thursday, saying that the unit will be called the Virtual Asset Exploitation Team (VAXU).
In a separate announcement on Thursday, the Department of Justice said in a press release that seasoned computer crimes prosecutor Eun Young Choi will be the NCET's first director, effective immediately.
Durgee argued that choosing Choi was a "fantastic move."
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"It’s inevitable as you see the growth of crypto globally, not just within the U.S., they’re [the DOJ is] going to have to have a department that’s focused on digital assets and cryptocurrencies," he added, noting that the move is "just part of the industry continuing to grow and mature."
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"Also, it shows that the U.S. very much understands that this [crypto] is here to stay," Durgee continued. "They’re going to be developing an entire department that is going to be focused on these types of activities and they are going to identify how best to regulate them and how best to work with them."
FOX Business’ Breck Dumas contributed to this report.