The well-known major investor Ruchir Sharma has compared the collapse of Bitcoin with the collapse of the Amazon stock. Just as the price of Amazon rose again at that time, BTC will also recover again.
The chairman of Rockefeller International believes that the downward movement of Bitcoin will continue in the short term. However, in the longer term, his expectations for the leading cryptocurrency are positive.
Ruchir Sharma: Bitcoin could recover
Ruchir Sharma is one of the well-known personalities who are convinced of a future for BTC. Furthermore, Sharma spoke in favor of the idea of a monetary system without binding to the US dollar. According to the famous businessman, although at this moment there is no alternative currency, but in the future Bitcoin could take on this role.
“The general dependence on the US dollar cannot continue. We need another, more stable currency, which is also suitable for transactions. In three to five years, BTC will hopefully turn out to be a value-stable asset.”
According to Sharma, BTC could take a similar course as the e-commerce giant Amazon. The famous investor explained that before his big rise, Amazon initially fell by 90%. Such a development could also occur with Bitcoin.
Amazon Price Chart
In the early 2000s, Amazon stock suffered a serious drop in value with the bursting of the dotcom bubble. But in the following 20 years, the asset gained more than 300 times in value. The chairman of Rockefeller says that the collapse of BTC is not at the bottom yet.
The bear market is not over yet
Ruchir Sharma pointed out that the harsh crypto winter could last for the next six months. And in these six months, there may be further declines, similar to US stocks. According to the investor, bear markets usually last about a year, and stocks fall by 35%.
“The current bear market is not yet a year old and the S&P 500 has only fallen by almost 20%.”
In view of the FED’s measures, Sharma does not expect investors to be willing to take risks at the moment. “I don’t see the bottom of Bitcoin and cryptocurrencies at the moment. The current US policy affects risk appetite around the world. The bear market is still intact.”
Summing up, we can say that the global collapse has not yet been completed. Nevertheless, you should follow exactly what is happening.
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