Bitcoin needs to get rid of excess leverage in order to become sustainable again. Ruchir Sharma, CEO of the management company Rockefeller International, stated this in an interview. CoinDesk.
Former top manager of Morgan Stanley and New York Times columnist compared the first cryptocurrency with Amazon. In the early 2000s, the dot-com crash caused the e-commerce giant’s stock to drop ~90%, but over the next 20 years, its value increased more than 300 times.
“Digital gold is basically a good idea that has been spoiled by too much cheap money and speculative interest”Sharma said.
According to the specialist, bitcoin is still engulfed in “speculative mania”. Over the next six months, against the backdrop of a decline in the stock market, the negative revaluation may continue, but in the future it will return to its highs.
The expert recalled that on average, Wall Street bear markets last about a year, during which the drawdown reaches 35%. By the current moment, the time criterion has not been met, rollback from ATH amounted to 20%.
“I am not yet ready to say that we have hit the bottom for bitcoin and cryptocurrencies. The negative dynamics in the US, a benchmark for risk appetite around the world, is still relevant,” he explained.
Sharma allowed the scenario of replacing the US dollar with bitcoin as a world reserve currency in three to five years if the volatility of the latter decreases.
Recall, Bloomberg strategist predicted bitcoin hitting the bottom and recovering the price in the next six months.
Read Cryplogger bitcoin news in our Telegram – Cryptocurrency news, courses and analytics.
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Bitcoin needs to get rid of excess leverage in order to become sustainable again. Ruchir Sharma, CEO of the management company Rockefeller International, stated this in an interview. CoinDesk.
Former top manager of Morgan Stanley and New York Times columnist compared the first cryptocurrency with Amazon. In the early 2000s, the dot-com crash caused the e-commerce giant’s stock to drop ~90%, but over the next 20 years, its value increased more than 300 times.
“Digital gold is basically a good idea that has been spoiled by too much cheap money and speculative interest”Sharma said.
According to the specialist, bitcoin is still engulfed in “speculative mania”. Over the next six months, against the backdrop of a decline in the stock market, the negative revaluation may continue, but in the future it will return to its highs.
The expert recalled that on average, Wall Street bear markets last about a year, during which the drawdown reaches 35%. By the current moment, the time criterion has not been met, rollback from ATH amounted to 20%.
“I am not yet ready to say that we have hit the bottom for bitcoin and cryptocurrencies. The negative dynamics in the US, a benchmark for risk appetite around the world, is still relevant,” he explained.
Sharma allowed the scenario of replacing the US dollar with bitcoin as a world reserve currency in three to five years if the volatility of the latter decreases.
Recall, Bloomberg strategist predicted bitcoin hitting the bottom and recovering the price in the next six months.
Read Cryplogger bitcoin news in our Telegram – Cryptocurrency news, courses and analytics.
Found a mistake in the text? Select it and press CTRL+ENTER
