Shark Tank star Kevin O’Leary aka Mr Wonderful has warned of a ‘major panic event’ in space cryptocurrencies† “I don’t believe we have seen the bottom yet and I have a different view of the situation,” he said.
Kevin O’Leary warns of a “major panic” in the cryptocurrency industry.
Last week, Shark Tank star Kevin O’Leary shared his thoughts on cryptocurrencies during an interview on YouTube channel Meet Kevin. Also see: Binance takes LUNA off the platform, while Terra offers token burning to UST . to save†
He was asked how low bitcoin price could go and whether BTC could drop to $13K, as some predicted. “It’s impossible to know where the bottom is,” replied O’Leary, adding:
I don’t think we’ve hit rock bottom yet and I have a different view of the situation.
Referring to his past experience, the Shark Tank star said, “I’m going back to other asset classes that I’ve invested in for decades. In all cases – traditional bonds, traditional stocks, real estate, alternative asset classes – the lows are reached with an event, a panic event as I call it, and you can find it in any asset class. †
We have yet to see this in the crypto world. No bigwig is zero yet and I think it is yet to come.
He added that it’s hard to predict who will be next to go bankrupt “because it’s going to be because of the leverage and some sort of relationship in a counterparty holding company that they haven’t disclosed.”
He said Voyager, the cryptocurrency lender that filed for Chapter 11 bankruptcy last week, is too small to count. “The rest of these guys were irrelevant in terms of total market cap,” he said.
The Shark Tank star pointed out that the cryptocurrency market, including bitcoin, “has nearly halved in terms of total market cap, so you would think we’re about to hit rock bottom.”
However, he pointed out: “I like big panic events. It’s always been a great way to get to the bottom – it’s throwing a towel, a sold-out crowd, huge volume, complete panic in the streets – and always a great buying opportunity. “He has developed:
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mr. Wonderful concluded: “It will certainly be a good thing for this industry. It will be a great thing because it will eliminate all the badly broken business models, the high leverage, the speculation that was too risky. †
The Shark Tank star predicted that trillions of dollars in crypto will flow from institutional investors once regulators enact crypto policies. He thinks crypto will become the 12th sector in the S&P. In June, O’Leary revealed that he held 32 positions in the digital asset space and sold none of them despite the crypto market sell-off. “I’m not selling anything… In the long run, you need to know how to cash in. You have to understand that you will have volatility and some projects will not work,” he emphasized.
What do you think of Kevin O’Leary’s predictions? Let us know in the comments below.
Kevin, an economics student from Austria, discovered bitcoin in 2011 and has been an evangelist ever since. He is interested in Bitcoin security, open source systems, network effects and the intersection between economics and cryptography.
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