The CEO of Crypto.com, Kris Marszalek, has emphasized the long-term perspective of holding Bitcoin (BTC) amid the market’s bearish volatility.
In the last 24 hours, Bitcoin has significantly corrected some of the gains amassed over the past weeks of steady uptrend.
According to CoinMarketCap statistics, BTC recently registered a 24-hour peak of $72,504. However, the asset has tanked by more than 10.47% to reach a low of $65,630 today.
Bitcoin’s price collapse has had far-reaching implications for the broader crypto market, with Ethereum, XRP, and Cardano similarly recording significant downturns.
Meanwhile, Crypto.com CEO Kris Marszalek believes the bearish market trend should be less of a worry to investors. Marszalek expressed this sentiment recently on CNBC’s Squawk Box.
“I think you would see a steady ramp-up, and that’s what we want. As the size of the market and the increasing liquidity happens, you will see lots of sudden moves,” said @cryptocom CEO @kris on #BTC. “This is an asset that you want to hold for decades, not for days or weeks.” pic.twitter.com/GlMiDBEYKa
— Squawk Box (@SquawkCNBC) March 15, 2024
Bitcoin Dip Is Removing Excessive Leverage
Marszalek was first asked to comment on Bitcoin’s recent bullish run, which saw it reach an all-time high two days ago.
The CNBC correspondent particularly sought clarification on whether this surge was primarily due to supply-demand dynamics, the emergence of the ETF market, or potential actions by the U.S. Federal Reserve.
Marszalek expressed that inflows from Bitcoin ETFs primarily propelled the surge in Bitcoin. Highlighting their considerable success, he noted the ETFs brought a supply-side challenge that ultimately reflected on Bitcoin’s price.
Meanwhile, Marszalek observes the current bearish sentiment as a constructive correction. He sees it as a healthy move to eliminate excessive leverage in the system and prevent abrupt and aggressive price spikes.
He stressed the importance of a steady influx of investments into the industry rather than sudden price pumps.
When questioned about whether ETFs or retail investors are responsible for the significant downturn, Crypto.com’s CEO believes neither group is primarily to blame.
Instead, he pointed to historical data suggesting that Options Market activities largely influence the dip. Additionally, he underscored that Bitcoin’s recent decline exhibits relatively low volatility compared to past cycles.
Bitcoin an Asset To Hold for Decades
Furthermore, Marszalek noted the likelihood of a gradual increase when pressed on how much further Bitcoin might decline. He suggested that sudden and drastic movements will become less frequent as the market expands and liquidity grows.
Moreover, he reiterated the notion that Bitcoin is an asset meant for long-term holding rather than an investment to hold for weeks, suggesting temporary fluctuations are immaterial.
“This is an asset that you want to hold for decades, not for days or weeks,” the Crypto.com CEO submitted.
