Ruchir Sharma, the chairman of Rockefeller International recently told CoinDesk on its First Mover TV program that Bitcoin will only reach or exceed its all-time high when the system is flushed.
Bitcoin’s comeback could be like the dotcom era
It’s no longer news that bitcoin is doing woefully as opposed to some months back, industry experts who have been monitoring the trend have given their two cents with most of them of the opinion that the bulls might have their season soon.
Ruchir Sharma, Rockefeller International Managing Director as well as a former emerging markets investor at banking giant Morgan Stanley (MS) and New York Times bestselling author recently aired his opinion on the ongoing trend.
Sharma opined that bitcoin will only get its weight back when all “excesses have been weeded out”, he described this as a need and went on to state the world’s largest cryptocurrency is good in its own right but its failure at the moment is caused by the infiltration of cheap money and widespread speculative interest.
The managing director said bitcoin’s comeback could be like that of e-commerce giant Amazon (AMZN), which recorded about a 90% decrease in the early-2000s dot-com collapse but eventually gained more than 300 times in value over the next two decades.
Bitcoin and other digital assets’ global collapse is yet to be completed
Sharma maintained that bitcoin still had a lot of collapsing to do citing Amazon’s decline once again, he noted that the company’s recovery wasn’t immediate, and he also stated that “Bitcoin remains in this speculative mania” for now.
When asked about other digital assets, Sharma stated that he also thinks the next six months could record further drops in altcoins and other digital assets, faulting this partly on U.S inflation and the decline in stocks generally.
Sharma noted that typical bear markets would usually run for about a year and stocks fall by 35%; however, this current bear market is less than a year and the S&P 500 has fallen by just 20%.
“I’m not willing to call the [market] bottom as of yet on bitcoin and cryptocurrencies,” he said. “The U.S. bear market regime, which is the driver of risk appetite around the world, is still very much in play.” Sharma said on the TV program.