In an interview with CNBC, Kris Marzsalek, CEO of Crypto.com, characterized the recent downturn in Bitcoin price as a “healthy” market correction.
Following a bullish trend that pushed Bitcoin to new heights, the cryptocurrency experienced a correction, currently trading at $68,715 according to CoinMarketCap. As the dip drew attention from investors, Marzsalek discussed this recent shift, noting it as part of the market’s natural ebb and flow.
Bitcoin Dropping from $73,000 is “Healthy”
Marzsalek first elaborated on the factors contributing to the current market dynamics, citing the substantial influence of Bitcoin exchange-traded funds (ETFs) on pumping the crypto’s value.
“The move is predominantly driven by the inflows from the Bitcoin ETFs,” said Marzsalek. “There’s a problem with supply side. So, it has to be reflected in the price.”
When queried about Bitcoin’s price drop from over $73,000, Marzsalek offered a straightforward analysis. “I think it’s a healthy move,” he commented, highlighting the necessity of such corrections for removing excess leverage in the market.
Marzsalek advocated for steady growth rather than abrupt spikes, suggesting that the current activities will foster a more stable and enduring market cycle over the next 12 to 18 months.
Marzsalek Sees “Steady Ramp Up” Ahead
In the past few days, the volatility witnessed in Bitcoin raised questions about the immediate forces at play. Marzsalek clarified, based on Crypto.com’s extensive data, the fluctuation is a reflection of activities in the options market, and not unusually high compared to past cycles.
“We can look back at what happened in 2021 cycle from retail perspective and compare it to what’s happening now,” said Marzsalek. “Probably in December, 2020, January, 2021, we are seeing this kind of metrics.”
“This level of volatility is actually pretty low comparing to what we’ve seen in previous cycles,” said Marzsalek.
Marzsalek predicted a “steady ramp up” in the future while the market size grows and the sudden dips happen less frequently.
“This is an asset that you want to hold for decades, not for days or weeks,” Marzsalek concluded.