Crypto.com CEO Considers Bitcoin’s Price Drop ‘Healthy’, Relates Market Phase to Dec 2020

Key Points

• The CEO of Crypto.com considers Bitcoin’s recent price correction as a healthy part of the market cycle.
• He attributes the cryptocurrency’s surge to the inflows from Bitcoin ETFs and believes the current market cycle resembles December 2020 or January 2021.

He views this as a part of the ongoing market cycle, likening it to the period of December 2020 or January 2021.

Bitcoin ETFs Driving the Market

Marzsalek believes that the surge in Bitcoin’s value, which has risen over 150% since last year, is primarily due to inflows from Bitcoin ETFs.

He stated, “This is a very successful product,” adding that the shortage of supply must be reflected in the price.

On March 12 alone, net inflows into spot Bitcoin ETFs exceeded $1 billion, highlighting the success of these new products.

The Current Market Cycle

When asked about the current market cycle, Marzsalek said that the recent price correction, which saw Bitcoin’s price decline from over $73,000 to about $65,000, was healthy.

He explained that this was a necessary step in removing some of the leverage that had built up in the system.

He also expressed his desire for steady inflows into the industry, into Bitcoin, and other coins, to ensure a sustained market run for 12 to 18 months.

Marzsalek also shared his views on the role of retail participants in Bitcoin’s current market dynamics.

He believes that the market cycle still has some way to go, stating, “We sit on a ton of proprietary data, so we can look back at what happened in the 2021 cycle from a retail perspective and compare it to what’s happening now.”

According to his analysis, the current price movements of Bitcoin are largely driven by the options market, with volatility levels being relatively low compared to previous cycles.

He concluded by expressing his belief that Bitcoin is an asset worth holding for decades.