Shark Tank star Kevin O’Leary predicts a significant Bitcoin capitulation event that will send cryptocurrency investors into a state of panic.
Kevin outrageously shared his in-depth analysis of cryptocurrencies in a recent interview with Meet Kevin on YouTube.
When asked about the further price declines and whether BTC would indeed reach the $13K level, O’Leary retorted that no one can predict where the bottom is. However, he has some different views on BTC.
Crypto Panic Event will Cause More Destruction in The Industry
The Shark Tank star has outlined his previous horror of asset classes in depth because he has invested in other assets as well as Bitcoin (BTC), and every time it has reached its lowest point, it has been closely linked to an event or what you might refer to as a panic event.
Panic events can occur in any asset class, including traditional bonds, traditional equities, real estate, and alternative asset classes. As per O’Leary, that hasn’t happened in the crypto world. There hasn’t been a huge guy who has reached zero yet, but he predicts that day will come.
According to him, it is challenging to anticipate who will go bankrupt next because it’s going to be due to leverage and some kind of relationship in a counterparty holding that they have not disclosed.
He further mentioned the big loophole as Voyager, the cryptocurrency lender that filed for Chapter 11 bankruptcy last week, is insignificant. In his opinion, the other members of the group were kind of unimportant in terms of total market size.
As per his analysis, the market capitalization of cryptocurrencies has been reduced in half, Thus BTC is already on its way to the bottom.
However, he amazed everyone with his statement that he enjoys: big panic events. As this always leads to the bottom and brings down a great buying opportunity for investors.
It will undoubtedly be highly beneficial for this industry, Kevin said in his conclusion. It will be fantastic because it will eliminate all of the subpar, flawed company models, excessive leverage, and dangerous speculation.
Adoption and Regulation: A Trillion-Dollar Game
Once authorities establish crypto regulations, Kevin believes that institutional investors will pour trillions of dollars into cryptocurrencies. He predicts that the S&P will add a sector for cryptocurrencies at number 12.
Previously, Kevin said in June that despite the decline in the value of the cryptocurrency market, he is still holding 32 positions in the digital asset sector.
He also stated that he won’t be selling anything and intends to make a long-term investment. He pointed out that there would be more volatility and few projects wouldn’t succeed.