Shark Tank star Kevin O’Leary says he’s expecting to witness a massive capitulation event that will trigger fear and panic among crypto investors.
In a new interview on YouTube investment channel Meet Kevin, the venture capitalist says he believes the bottom is not yet in for digital assets even though the market cap of the nascent industry has lost more than half of its value from its peak.
“There’s no big guy who has gone to zero yet, and I think that’s still to come. Hard to say who it is because it’s going to be because of leverage and some kind of relationship in a counterparty holding that they have not disclosed, and I’m just speculating right now, but that would be very healthy for the market to have that happen.
Voyager is too small. It doesn’t matter. The rest of these guys were kind of irrelevant in terms of total market cap. Bitcoin and the crypto market itself has almost been cut in half in total market cap and so you would think we’re on our way to the bottom.”
O’Leary is referring to crypto brokerage Voyager, a firm that filed for chapter 11 bankruptcy earlier this month after a big borrower defaulted on a sizable loan.
The billionaire highlights that he’s still waiting for a big capitulation event that would rock the crypto industry.
“I like a big, big panic event. That’s always been a great way to bottom. It’s towel throwing. It’s capitulation. It’s massive volume. It’s total panic in the streets and always a great buying opportunity.
I have no idea who’s next. Could be tomorrow morning, could be a month from now, but it’s coming to a theater near you, and it will definitely be a very good thing for this industry. It’ll be a great thing because it’ll take out all of the bad broken business models, the heavy leveraged [and] the speculation that was too risky.”
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