Crypto.com CEO: Bitcoin Price Correction is a Positive Sign ๐
In an interview with CNBC, Kris Marzsalek, CEO of Crypto.com, discussed the recent correction in Bitcoinโs price and characterized it as a โhealthyโ market adjustment. As Bitcoin experienced a dip after reaching new highs, currently trading at $68,715 according to CoinMarketCap, Marzsalek emphasized that this correction is a natural part of the marketโs ebb and flow.
Factors Influencing Market Dynamics
Marzsalek explained the factors contributing to the current market dynamics, particularly highlighting the significant influence of Bitcoin exchange-traded funds (ETFs) on driving up the cryptocurrencyโs value. He noted that the inflows from these ETFs have created a supply-side problem, which needs to be reflected in the price.
A Healthy Move for Bitcoin
When asked about the drop in Bitcoinโs price from over $73,000, Marzsalek expressed his view that it is a healthy move. He emphasized the importance of such corrections in removing excess leverage from the market. According to him, steady growth is preferable to abrupt spikes, and these corrective actions will contribute to a more stable and enduring market cycle over the next 12 to 18 months.
Past Volatility and Future Predictions
Marzsalek addressed the recent volatility witnessed in Bitcoin and clarified that it is not unusually high compared to past cycles. Based on Crypto.comโs extensive data, he attributed the fluctuation to activities in the options market. He compared the current metrics to those seen in December 2020 and January 2021 during the previous cycle.
Marzsalek pointed out that this level of volatility is relatively low when compared to previous cycles. He predicted a โsteady ramp upโ in the future as the market size grows and sudden dips become less frequent. He emphasized that Bitcoin is an asset that should be held for decades, not just days or weeks.
๐ฅ Hot Take: Positive Outlook for Bitcoinโs Correction
In summary, Kris Marzsalek, the CEO of Crypto.com, views the recent correction in Bitcoinโs price as a positive sign for the cryptocurrency market. He believes that this correction is necessary to remove excess leverage and foster a more stable and enduring market cycle. Marzsalek also predicts a steady ramp up in the future, with less frequent sudden dips. According to him, Bitcoin is an asset that should be held for the long term rather than short-term gains.
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