A Major Capitulation Event Is Coming to the Crypto Market, Warns Kevin O’Leary
Celebrity investor Kevin O’Leary (better known as “Mr. Wonderful” on the ABC television program “Shark Tank”) believes that the crypto market is about to experience a catastrophic capitulation.
O’Leary asserted that the cryptocurrency markets risk a big collapse event on July 6 during an appearance on the YouTube series “Meet Kevin,” which will cause additional investor panic. O’Leary stated that despite the price decline over the previous two months, the market has not yet reached a bottom.
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According to the Shark Tank investor, a “major man” in the cryptocurrency sector would eventually go to zero, which would be “extremely beneficial” for the market.
O’Leary stated:
“There’s no big guy who has gone to zero yet, and I think that’s still to come. Hard to say who it is because it’s going to be because of leverage and some kind of relationship in a counterparty holding that they have not disclosed, and I’m just speculating right now, but that would be very healthy for the market to have that happen. “
O’Leary offered his opinion on the cryptocurrency brokerage Voyager Digital, which on July 6 filed for Chapter 11 bankruptcy protection following the default of a large-capital borrower on loan. The company, according to O’Leary, is too little to be his “big guy” going to zero, and other crypto businesses that have failed so far are also “irrelevant” in terms of market value, he claimed.
“It’s Total Panic in the Streets and Always a Great Buying Opportunity”
O’Leary cautioned that a major capitulation event in the cryptocurrency markets might occur soon, increasing uncertainty for investors. However, he added the qualification that such a circumstance would give a fantastic purchasing opportunity:
“I like a big, big panic event. That’s always been a great way to bottom. It’s towel throwing. It’s capitulation. It’s massive volume. It’s total panic in the streets and always a great buying opportunity.”
I have no idea who’s next. Could be tomorrow morning, could be a month from now, but it’s coming to a theater near you, and it will definitely be a very good thing for this industry. It’ll be a great thing because it’ll take out all of the bad broken business models, the heavy leveraged [and] the speculation that was too risky.”
The renowned investor claimed that although it was difficult to estimate when the event would occur, it would be “extremely excellent for our industry.” A capitulation event, according to him, would destroy the defunct business models and assist the market in unloading its excessively leveraged speculation.
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