CoinShares CSO Meltem Demirors sees the current fall of the crypto market as a correction that will shake out weaker investors.
A crypto strategist and known Bitcoin bull Meltem Demirors believes that the ongoing crypto collapse is just an ordinary correction, which would wipe out investors with “paper hands.” She pointed that Bitcoin has always been volatile and reassured that it “is not going anywhere.”
She said in an interview for CNBC that markets could not expand forever. Now, they suffer contractions, just as it is often happening in the crypto world.
The current situation in the cryptocurrency market doesn’t look optimistic from a short-term perspective. The dollar value of the largest digital asset recently dropped below $30,000 first since January 2021.
Demirors believes that the price decline of the digital assets has its good side, as well, as the market might clean itself from weaker investors:
”What we’re seeing is a correction, a contraction, and a lot of what is getting shaken out is what we call the ‘paper hands,’ the ‘weak hands,” she said.
Regarding Bitcoin, CoinShares CSO reassured it ”is here to stay” and ”is not going anywhere.” She believes that a lot of people without much crypto knowledge jumped on the Bitcoin bandwagon a few months ago when its value was flying to the sky, but now those are the ones who have to jump out.
“I think we’re going to continue to see consolidation here,” Demirors said. “There is a lot of macro-uncertainty. Obviously, there’s a lot of uncertainty around the policy. There’s also a lot of negative headlines.”
She explained that during the steep pullback in May, there was “a bunch of leverage coming off across the board. Now, we’re done deleveraging. Now we’re seeing a lot of cash selling.”
“I think part of this is just the cycle we go through every several years with crypto, but we are seeing a lot of new inflows. We are seeing a lot of activity, in particular, on the market side,” Demirors added.