According to the entrepreneur, this will have a positive impact on the industry by eliminating companies with risky business models

Kevin O’Leary predicts massive collapse of the crypto market

11.07.2022 - 11:50

398

2 min

What’s new? According to Canadian entrepreneur and investor Kevin O’Leary, the digital asset market will soon experience a massive capitulation, triggering fear and panic among crypto investors. He added that cryptocurrency rates have not yet hit the bottom, despite the total market capitalization falling by more than 50% from its peak values, in November 2021 it exceeded $3 trillion, and as of July 11, 2022, is only $954,6 billion. O’Leary revealed this in an interview on the YouTube channel Meet Kevin.

Kevin O’Leary interview

Capitulation is a process in which investors leave the market and sell off an asset at a loss because of a major collapse.

What else did O’Leary say? The entrepreneur noted that so far no big player has suffered a collapse, but it is only a matter of time. He believes that the cause of the collapse will be high leverage and “some kind of relationship in a counterparty holding that they have not disclosed” so such events would be good for the market.

O’Leary noted that the bankrupt cryptocurrency broker Voyager Digital is too small and its collapse would not put pressure on the crypto industry. The other companies already affected are also not significant to the digital asset sector in terms of overall market capitalization, he said. The entrepreneur added:

“I like a big, big panic event. [...] It’s total panic in the streets and always a great buying opportunity. I have no idea who’s next. Could be tomorrow morning, could be a month from now, but it’s coming to a theater near you, and it will definitely be a very good thing for this industry. It’ll be a great thing because it’ll take out all of the bad broken business models, the heavy leveraged, the speculation that was too risky.”

Who is Kevin O’Leary? He is a Canadian businessman, entrepreneur, venture capitalist, politician, and broadcaster. In April, he stated that the price of bitcoin would never fall to zero. O’Leary explained that he saw cryptocurrency as a means of savings and noted that he set aside equal shares of his portfolio for bitcoin and gold (5% each). In June, the entrepreneur called payment systems the most promising segment of the cryptocurrency market. In this, O’Leary noted that regulatory measures must be taken for its successful use.

Subscribe to Getblock Magazine and stay up to date with the latest news from the world of cryptocurrencies and the digital economy