Mixed Opinions on Crypto Downturn

The recent crypto market downturn accompanied by Terra’s collapse is still ongoing. Expectations of higher Federal Reserve interest rates are hurting crypto prices as well. Some investors are panicking, some are trying to earn, and some are as calm as always.

Kevin O’Leary, aka Mr. Wonderful, Canadian businessman, multimillionaire and a strategic investor of Wonderfi Technologies says he is not selling any of his cryptocurrencies.

“Long term, you just have to stomach it. You have to understand you’ll get volatility. There’s been a big correction in the market but you’ve got to hold your nose and get used to the volatility.” He also said that “stablecoins’ collapse provide valuable lessons to investors”.

Rick Rieder, the CIO of global fixed income at Blackrock, says bitcoin and crypto are durable assets.

“I think there’s a healthy recalibration going on, it’s a question of how much that recalibration is going to go” he said.

Central African Republic president, Faustin-Archange Touadéra also stays optimistic despite critics of recent decision to approve BTC as legal tender:

El Salvador president also believes in brighter future:

“My advice: stop looking at the graph and enjoy life. If you invested in BTC your investment is safe and its value will immensely grow after the bear market. Patience is the key.”

However, some people are less optimistic. Jim Cramer, the host of Mad Money, former hedge fund manager who co-founded Thestreet.com, expects BTC to fall to $12K. Jeffrey Gundlach, Doubleline Capital CEO, “wouldn’t be surprised at all if bitcoin drops to $10K”. Guggenheim CIO Scott Minerd said bitcoin could plunge down to even $8K.

As we have already discussed this topic in a previous article, market volatility is a normal thing. In our opinion all the excess attention and speculation around crypto and blockchain now increases its volatility, expectations and concerns, that is why currently we often see such exaggerated and mixed reactions:

Usually similar fluctuations don’t lead to this level of panic: a few months ago Netflix shares fell by almost 40%, but nobody was talking about “the dramatic end of streaming services” or “TV winter”… We believe the following tweet is the best position. Keep calm and continue to observe!