Blockchain Research Institute’s Alex Tapscott: Bitcoin’s Price was Artificial, Healthy Correction Happening
While a lot of casual spectators have been saying that the recent market crash happened due to a number of crypto whales selling of their altcoin holdings, Alex Tapscott, co-founder of the Blockchain Research Institute, believes that the recent crash (which has created a lot of FOMO and FUD in the market) was caused due to a whole host of reasons and not just one.
On the matter, Tapscott went on to say:
“I think that the high that we reached last year was an artificial one that was based on a lot of hot money entering the sector and pushing valuations up to a level that was totally unsustainable. So I think most of the correction that we’ve seen so far has been very healthy. I think what’s happened in the past couple of days or a couple of weeks has basically been a flight to liquidity.”
Long Term Investors Are Liquidating Their Crypto Holdings
When talking about the falling prices of crypto assets, Tapscott also added that a lot of investors who had invested earlier in the digital currency space are now looking to cut their losses by dumping their remaining holdings. Not only that, Alex also mentioned that many investors are currently in the process of redeeming their investments — which are now supposedly close to reaching their 1-year maturity status.
In this regard, Tapscott also stated:
“There are a lot of projects who’ve raised money over the past year who are looking at their treasury basically evaporating because they still hold a disproportionate amount in ether and bitcoin and they’re essentially trying to liquidate fiat as quickly as possible so it’s sort of a perfect storm of a number of things.”
In closing out this article, it is worth mentioning that Tapscott sees the future of the crypto market to be quite good (even though things may appear to be otherwise at the moment). He was recently quoted as saying that many people are just shocked right now “because they were simply waiting for the price of Bitcoin to shoot up” without really thinking of the long term game.