In a new interview on the Uncommon Core podcast, Zhu says that a confluence between the Bitcoin price spike and a series of bearish news likely sparked the big sell-off that reduced BTC’s value by more than 50%.
Zhu refers to the potential closure of Bitcoin mining in China and tweets from Tesla CEO Elon Musk lambasting the flagship cryptocurrency for what he sees as unsustainable properties for the environment.
“I think there was a lot of news that came out at the time that was a bit bearish, especially in China regarding mining, but also in the United States with Elon’s tweets on the Tesla and Bitcoin power consumption… These aren’t the immediate causes, but they were some of them, and I think the market took this as a bombardment point to start taking profits. So I think that was the highlight of that, plus the fact that the people who were buying from the start were saying, “Okay, if I wait, I could get it at a much lower price, then I will. will wait. ”
So I think that was the culmination of those two factors that drove it on, but if you look at how the markets have rebounded you can see these buyers are still there. It’s just a matter of the price they’re going to get. At the start and in the middle of this race, they kept buying at higher and higher prices, and this time they managed to get some at lower prices than before.
At the end of the day, there is still a huge buying demand.
In the interview, Zhu claims that “the bull run is certainly not over” and that decentralized finance (DeFi) is about to make a huge infiltration into the financial institution as investors find out about returns and returns. upper instruments.
According to the crypto veteran, the recent survey showing that hedge funds plan to pour hundreds of billions of dollars into crypto is also a bullish mega catalyst that could strengthen digital asset markets tremendously.
“The reality is that once you have this infiltration and people get used to this idea of digital scarcity and that kind of floating around, then you will have a whole new set of natural buyers who will come in when there are hollow. These people trade these assets as instruments like copper or some other commodity. They’ll find reasons to buy and sell it as well, so I think the whole process is something very, very bullish in the long run as it is massively expanding the base of holders.
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Image en vedette : Shutterstock/camilkuo