Bitcoin plunged to a 16-month low, while the altcoins suffered even more in the past week or so. Despite bouncing off and reclaiming some ground, the situation is still dire, and Cardano’s Charles Hoskinson provided his outtake on it.
Charles Hoskinson’s Views
Cardano Founder Charles Hoskinson noted that the market is deep in a new crypto winter, and it will take weeks or even months for a bottom to appear, following which there will be some respite. According to him, the digital asset markets are in a phase of “panicked blood in the street.”
Hoskinson tweeted,
“If this is your first crypto winter, then welcome. Been through many since 2011 and they always hit like a cold ice bath. We are in the panicked blood in the street phase. It clears in weeks to months as a bottom is found. Then a long climb up the ladder.”
Institution vs. Retail
Bitcoin has managed to capture the institutional interest, something that has been often celebrated. While the retail investors continue to hold crypto as they opt out of an “unfair,” “rigged” global system, the IOHK chief believes that the foray of “Wall Street types” into digital assets has exacerbated the latest downturn.
He said that institutional cohort have been dumping their crypto and most are looking at it as a high-risk, high-return asset. He added,
“This was always the danger of inviting the Wall Street types in… And when the markets go not in the direction they want, they dump it. They tread crypto just like any other asset and label it as an exotic high-risk one. When the markets do not go in the direction they want, they dump it.”
Many consider the recent turn of events “a black swan and historic” in size. While weighing on the unwinding of UST, the exec said that a collapse of a stablecoin or a project exit scam does not mean it is the end of the entire industry. Hoskinson added that the whole point of the crypto market is to restore the lost trust, credibility, and stability in the global money system.