In a discussion on one of the hot topics in the industry, Silbert, who owns and manages stakes in the foremost startups of the industry, noted that the debacle of Bitcoin Cash which is yet to come to its final head, has caused a lot of distraction for investors.
Silbert, indicating that he is not in support of the fracas but remains a proponent of Bitcoin, said: “The fork is a distraction. The industry did itself a real disservice, but let me give you the other side of that — if Bitcoin emerges as the winner, it will have been battle-tested, as it has been challenged by competitive cryptocurrencies and internal development strife.”
Silbert did everything possible to understand why Bitcoin, along with other altcoins experienced a jaw-dropping sell-off that caught investors unawares.
First, he explained that the biggest investors in cryptocurrencies were groups or funds having asymmetric risk appetites. He also said that, most times funds hold position in great-risk, mostly tumultuous technology stocks as well as crypto holdings. It is obvious that the macro market has been inciting the investors of Bitcoin
The DCG head, one of the first known entrepreneurs of the crypto industry then drew attention to the ICO market, which felt the harsh treatment of the SEC crackdown that happened of recent. Considering the fact that ICOs primarily led to the monumental bull run that occurred in 2017, the fact that “ICO market is completely unwinding” has been a bearish catalyst for crypto assets.
Speaking further on this purposed factor, as the collapse of ICO-funded tokens happen, startups started making plans to liquidate their war chests, which were majorly filled with Ether to stay financially afloat.
Finally, he noted that crypto hedge funds are experiencing their first redemptions, which will put more selling pressure on the crypto market.