The leading Shark Tank and venture investor believes that the situation in the cryptocurrency market will lead to the default of large companies, increase the panic and speed of the fall of bitcoin.
Kevin O’Leary plans to witness massive capitulation, fear and panic among crypto investors. The podcast host is confident that digital assets have yet to hit their bottom, although the industry’s market capitalization has lost well over half since its peak:
“So far, not one major investor has gone to zero, but I think that the collapse of the institutional ones is still ahead. It’s hard to say who it will be, but it will happen because of the leverage and at first no one will disclose information about their financial condition.”
It would be good for the market if a really big company defaulted, argues Kevin O’Leary:
“Voyager is too small and its collapse will not put pressure on the crypto industry. The others that have already been affected also do not matter much to the industry in terms of overall market capitalization.”
True, since the market capitalization of Bitcoin has already halved, then the industry is moving in the direction indicated by O’Leary:
“I like the fact that there is more and more panic. I have no idea who’s next. Maybe tomorrow morning, maybe in a month, but it will be great because it eliminates non-working and too risky business models.”
At the same time, many major players are trying to help companies that are facing economic difficulties, which can prevent bottoming and lengthen the crypto winter. Tron founder Justin Sun recently announced that he was ready to provide up to $5 billion to rescue companies trying to survive in the conditions of high volatility in the cryptocurrency market.
Source: Bits
I’m James Harper, a highly experienced and accomplished news writer for World Stock Market. I have been writing in the Politics section of the website for over five years, providing readers with up-to-date and insightful information about current events in politics. My work is widely read and respected by many industry professionals as well as laymen.
