Bitcoin’s cataclysmic sell-off slashed the top cryptocurrency’s value by over 50% from its 2020 high of $10,500. Some of the biggest figures in the crypto industry are sharing their two cents over the recent meltdown.
Tyler Winklevoss, co-founder and CEO of cryptocurrency exchange Gemini, says that Bitcoin has taken a lot of punches and is still standing.
“Bitcoin was born in 2008, during the winter of our financial discontent. It has already weathered much to be here, and it seems unlikely to give up anytime soon. It will emerge from this current calamity stronger than ever. Decades are not measured in days.”
The Bitcoin whale also emphasizes that the king cryptocurrency is a relatively young asset.
“If bitcoin isn’t gold 2.0, then what is it? The fact that it’s not acting how you might expect only underscores just how early it is.”
Galaxy Digital chief executive Michael Novogratz suggests the entire cryptocurrency market is based on confidence.
“BTC was always a confidence game. All crypto is. And it appears global confidence in just about anything has evaporated. What brings it back to BTC.”
Novogratz also speculates that institutions may not be behind the market sell-off as investors rush to the exits quickly to minimize losses.
“That wasn’t institutions. That was a leveraged washout. Institutions aren’t fast enough to sell like that. That was panic selling from people who bought on margin.”
“How did BTC go from being a hedge against bad stuff to getting washed out and trading like a risk asset? When things go from bad, to very very bad like they did last week, investors take leverage down as fast as they can. They book profits to make up for other losses. Ouch.”
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