Kevin O‘Leary Predicts Massive Crypto Panic Event

2022-07-14, 10:37

[TL; DR]

Kevin O'Leary claims that a big panic event is in the cards for the crypto sector in the near future. The Television presenter and shark tank fave made some predictive statements concerning crypto in a YouTube interview with Meet Kevin.

O'Leary opined that every financial sector always hits rock bottom at one point or the other before rising once again. The entrepreneur believes that the crypto sector hasn't quite touched down yet, but is on its way.

He anticipates that the final crash would involve a mammoth crypto company collapsing to zero. This event, says O'Leary, will create a gigantic panic attack that would weed out the business models that are flawed and lacking in strategic integrity. i.e., those involved in unhealthy leveraging and risky speculations.

The shrewd entrepreneur opined that when the predicted crash occurs, it will be a great time for buying digital assets. O'Leary believes that once crypto is properly regulated, it would draw investments worth trillions and would likely become the number 12 sector on S&P.

At writing, he holds 32 positions on the crypto market, which he claims to have no intention of selling as he is banking on long-term returns. Meanwhile, the crypto winter continues with major companies incurring major losses resulting in a reduced market cap. In fact, for the first time since 2021, crypto market capitalization landed below the 1 trillion mark in early June. To find out more about O'Leary's YouTube predictions, read to the end.

O'Leary says The Crypto Market Is About To Bottom Out

In his characteristic blunt manner, Shark Tank investor Kevin O'Leary predicts what he calls a “massive crypto panic event.” Mr. Wonderful, as they fondly call him, was live on the Meet Kevin YouTube page for an interview. The entrepreneur shared his views on the current issues in the crypto market.

Crypto Panic Attacks According to Kevin O'Leary

Source: CNBC

When asked about the circulating predictions that Bitcoin would hit $13k in the ongoing crypto winter, the presenter had a different opinion. He pointed out that it was impossible to determine where this downward spiral would end. However, O'Leary opined that the downturn was inevitable and had yet to occur.

Having studied several sectors, the entrepreneur noted that they all experienced similar crashes and that crypto was bound to go through the same experience. According to O'Leary, this experience usually occurs when a giant in the affected industry suddenly bottoms out totally. Such an event then leads to a massive panic in the market, which would impact companies with flawed models running abnormally high leverages and ill-judged risks. He estimated that cryptocurrency's version of such a panic event is in the offing.

Voyager Is Not The Worst Of It

When the topic of the lending platform Voyager which recently filed for bankruptcy came up. O'Leary dismissed it as a tiny drop in the ocean. The shark tank investor explained that companies like voyagers make up very little of the total market size, and the big fish that would wreck the crypto boat has yet to crash.

Voyager, a cryptocurrency lending company, had filed for chapter 11 bankruptcy when a major borrower had defaulted on its payments. Mr. Wonderful predicts that when the next bankruptcy occurs, it will have to do with leveraging issues or a relationship with currently undisclosed counterparty holdings.

Source: Business 2 Community.

In November 2021, Bitcoin had climbed to an all-time high of $68,000, with the global crypto market cap hitting a whopping $2 trillion. However, as it stands, Bitcoin is currently trading at around $23,000 and the industry market cap is around $890 billion, almost a 60% difference.

“It's a Great Opportunity For Investors”, Opines Mr. Kevin O'Leary

Despite predicting a further decline in these numbers, Mr. Kevin O'Leary stated that he is excited because he believes it's in the midst of chaotic panic events that investors make the best buys. More so, O'Leary rejoiced that this shaking would get rid of companies operating inept and flawed business strategies.

Furthermore, Mr. Wonderful foresees that digital assets will gain acceptance as the 12th sector under S&P as soon as it is properly regulated. This is because institutional investors will funnel trillions of dollars into the industry once the authorities regulate it.

The Canadian businessman holds 32 positions in digital assets and has no plans of selling them. Although the loss of value might hurt in the short term, He believes that it will pay if he endures. In other words, the shark tank investor is into crypto for the long haul.

To Cap it Up

Kevin O'Leary, in an interview with Meet Kevin last week predicted a massive crypto meltdown that would result in a crypto panic event. The shark tank investor believes it's a good thing as it would provide excellent buys to investors. Drawing from his wealth of experience investing in other sectors apart from cryptocurrency, he judges that this event is still in the future. O'Leary further stated that it would involve a big fish in the crypto industry crashing to zero, although he couldn't predict who.

Author: Gate.io Observer: M. Olatunji
* This article represents only the views of the observers and does not constitute any investment suggestions.
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