According to the banker, a deep correction does not require any special catastrophic events to launch, and the fall of the first cryptocurrency quotations can drop the price below $ 110,000.
“We all want to think that Bitcoin is an instrument of protection against inflation, and I believe that one day it will become one. But I do not think that we have already achieved this. I still consider BTC as a very risky asset. At least, the correlation between Bitcoin, the Exchange Index S&P 500 and the action market is still very strong. Bitcoin’s cyclicality has not died, ”said the CEO of Xapo Bank.
The planned rebalance of investmentports and a decrease in the number of positive news associated with bitcoin can cause the next decline, which for many investors may be unexpected, Rocks believes. In his opinion, the “negative effect of infection” can quickly lead to the fact that the cryptocurrency market will exhaust its potential, and even large corporate players will not be able to support it.
Earlier, the American economist and cryptoqueptic Peter Schiff said that the company buying bitcoins and broadcasts have no reliable business models, and urged investors to switch to silver.
Source: Bits
I am an experienced journalist, writer, and editor with a passion for finance and business news. I have been working in the journalism field for over 6 years, covering a variety of topics from finance to technology. As an author at World Stock Market, I specialize in finance business-related topics.
