Venture Capitalist Warns of "Heavy" Bitcoin Bear Market 2

Venture Capitalist Warns of "Heavy" Bitcoin Bear Market

Venture Capitalist Warns of "Heavy" Bitcoin Bear Market 3

The Bitcoin trade has been sluggish in recent months as investors speculate that Bitcoin could actually serve as a safe haven. There are also assumptions that Bitcoin has an effect similar to gold.

Are we threatened by the next big accident?

Yesterday's performance dropped below the psychological level of $ 10,000 yesterday before the title cameback. The price of bitcoin has fluctuated more than $ 1,000 in 24 hours, offering investors the benefit of whiplash.

A leading venture capital investor and Bitcoin investor warned today against an impending recession that a "serious" financial crisis could weigh heavily on Bitcoin's price and plunge it into a bitter market downturn.

Spencer Bogart, principal partner of venture capital firm Blockchain Capital, told Bloomberg:


Venture Capitalist Warns of "Heavy" Bitcoin Bear Market 5

"If you think of really serious crises, a liquidity crisis, another global financial crisis, I think Bitcoin will probably not have very good results from a price point of view."

Many economic indicators have recently triggered alarm signals that the global economy could be paralyzed. The yield curve for US bonds turned negative at the beginning of the month, which means that the cost of borrowing for the US government was lower in the long run than in the short term.

Bitcoin, which was created in the midst of the global financial crisis of 2008, is often explained as an alternative to the traditional financial system. However, due to the growing acceptance of cryptocurrencies by major financial institutions, this has been linked to the existing financial system.

"I think long-term bitcoins will definitely be a haven," said Bogard, although bitcoins have continued to fluctuate wildly in recent months, adding that he "is not convinced that economic crises are preparing for the horizon ".

"I mean, as the adoption curve grows, we see Bitcoin evolve in one way or another, so I think for the moment it is of a kind of intermediate state in which one really has to think about the risks and the difficulty of assuming them, so I think that if you face the threat of currency devaluation, things like this, Bitcoin is certainly very attractive, and I think this has been a determining factor in the recent price hike. "

Source: Pixabay