The crypto market has been on a freefall over the past seven days, with the leading digital asset dipping to a 16-month low. Even though BTC has recovered and made some gains, it is still nowhere near its peak price, which it attained last November. However, Cardano founder, Charles Hoskinson, has shared his insights regarding happenings in the crypto space in recent weeks. Hoskinson shared his opinions through a YouTube live session on Wednesday.
It Will Take Months Before A Bottom Will Appear – Hoskinson
Hoskinson further remarked that a crypto bottom is nowhere near right now as it will take months before that can happen. However, he noted that there will be recovery soon after this dip, in what he refers to as “the new crypto winter.”
He opined that the digital asset market can be likened to having “panicked blood on the streets.” The Cardano founder tweeted, “if you are experiencing your first crypto winter, welcome. There have been many of such for more than a decade, and they always happen as if you have an ice bath. A bottom would be hit in the next few months, after which a strong bullish move is expected to happen.”
Wall Street-Type Investors Are Partly To Be Blamed For This Latest Downturn – Hoskinson
Many retail investors are crypto holders because they consider cryptos, especially stablecoins, an inflation-proof investment. But, while it is often celebrated that institutional investors continue to take an interest in BTC, Hoskinson believes some of these institutional investors, especially the wall street types, are partly responsible for the current decline in the crypto market.
He remarked that these wall street-like investors have been ‘shorting’ their crypto holdings because their only perception about it is that it is a high-risk, high-return asset. Hoskinson further explained, “it is inevitable that intense selling pressure will happen once Wall Street investors start holding cryptos.
They don’t mind selling their holdings at a loss once the markets don’t move in their preferred direction. They assume that crypto trading is like trading any other asset, with the only difference being crypto is a riskier asset to trade than others.”
Many crypto holders consider recent happenings in the crypto market as historic. However, the Cardano founder remarked that the crypto industry is nowhere near its end even if more stablecoins collapse or several rug-pulls happen with any crypto project.
Hoskinson also said, “the primary objective of the crypto sector is to have a global monetary system that people can trust and one that is credible and stable.” As the live stream came close to an end, Hoskinson remarked that he and his team would keep working towards the greater growth of the Cardano ecosystem, which is one of the reasons for the Vasil hardfork slated for early next month.
