Kris Marszalek, the CEO of Crypto.com, presented his opinion on the current state of the cryptocurrency market. With a distinctive drop in Bitcoin’s (BTC) value, Marszalek advises investors to take a long-term outlook for their Bitcoin holdings. The advice is timely as Bitcoin, as well as other leading cryptocurrencies like Ethereum, XRP, and Cardano, had been hit by notable losses.
Bitcoin crashed by 3.16% from the 24-hour peak of $72,504 to a low of $68,379. The drop is a part of a more significant drop in the crypto market, which affected many of the digital assets. Marszalek is, however, bullish on the future of Bitcoin investments despite the ongoing bearish trend. He made the comments while on CNBC’s Squawk Box, where he talked about the factors that were affecting the recent price moves.
Bitcoin Drop, a Constructive Correction
The discussion on CNBC was about the causes of Bitcoin’s bullish run, which had reached an all-time high only a few days before. The main reason for the surge, according to Marszalek, was the arrival of spot Bitcoin ETF. He observed that BTC ETF posed a supply-side threat, having an important influence on the cost of Bitcoin. “Constructive correction” was a phrase used by the CEO to characterize the recent decline as an attempt to reduce the excessive leverage within the system.
Marszalek rejected the idea that the downturn was caused either by BTC ETF or retail investors. However, he referred to the Options Market playing a big role in the current price drop. He also pointed out the low volatility of the price of Bitcoin, mentioning its relative stability compared to previous cycles. This stability, as Marszalek points out, indicates a mature market that is likely to have less rapid price changes over time.
Marszalek Views Cryptos as Decades-Long Assets
The effect of Bitcoin’s fall goes beyond the said leading coin; it also affects the entire crypto market with assets such as Ripple (XRP). The value of Bitcoin was falling, and so, along with lots of other cryptocurrencies, Ripple recorded significant downturns. However, Marszalek advices investors to wait and consider that such investments should have longer-term horizons.
He points out that Bitcoin and, by extension, Ripple cryptocurrencies should not be seen as short-term assets. He recommends that such assets should not be traded in the short term but rather held for decades. This view highlights an opinion on the lasting role of cryptocurrencies, even though market changes are temporary. Marszalek’s position, however, provides an opposite view to reactive trading strategies and suggests steadfast investment as a course of action even in times of volatility.
