July 29, 2021

What type of situation, if any, could crash Bitcoin? VC firm partner speculates

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During the market downturn in March 2020, Bitcoin (BTC) fell over 50% in value across a two-day period. Traditional financial markets also dropped vastly in March. Although Bitcoin posted a standout recovery, going on to smash all-time price highs, one might wonder what, if any, condition could instigate a similar future drop for crypto’s largest asset. Dermot O’Riordan, partner at venture capital outfit Eden Block, recently gave his thoughts on the matter. 

“In the short-term Bitcoin’s value prop as a non-sovereign censorship resistant hedge to the dollar is growing stronger by the day,” O’Riordan told Cointelegraph. “Saying that, Bitcoin’s volatility isn’t going away anytime soon, and I expect to see a lot of volatility for years to come from those in the money taking money from the table,” he said, adding:

“Something often overlooked however is that every new price milestone unlocks a new larger class of institutional investor with a mandate to purchase the asset, which will dampen sell-side pressure.”

Bitcoin has won over a number of mainstream financial giants, including MicroStrategy, MassMutual, Paul Tudor Jones and others. Such players sank significant cash into the digital store of value in 2020, with the buying trend heating up in theTitle: What type of situation, if any, could crash Bitcoin? VC firm partner speculates
Sourced From: cointelegraph.com/news/what-type-of-situation-if-any-could-crash-bitcoin-vc-firm-partner-speculates
Published Date: Thu, 07 Jan 2021 19:30:00 +0000