According To Coinshares Executive, Bitcoin In Financial And Altcoins In Liquidity Crisis

Notorious for their price fluctuations, cryptocurrencies had mostly seen a relatively stagnant trading scene in the past few months. After the great boil off at the start of the year, digital assets were locked in what was a perpetually balanced bull and bear fight.

Even with many pessimists screaming that the stability in the market only reflected an impending crash, experts and traders were caught off guard with the current price plummet.

Meltem Demirors, Chief Strategy Officer at Coinshares, made a presence on CNBC’s Fast Money program, where she highlighted a number of events that led to the current turmoil in the crypto markets.

She first pointed out that the relative stability in the market for so many months meant that institutional investors and other crypto investors had probably seen the relative calm in a negative manner. With a track record of high gains at high risks, their expectations might not have been met. The sudden sell off could be the whales liquidating a portion of their assets.

Secondly, with Bitcoin Cash fork only a day away, investors could have been more scared about a repetition of Bitcoin’s price behavior during the original BTC fork back in 2017.

According to Demirors, Bitcoin is currently going through a financial crisis, with other tokens and altcoins going through a liquidity crisis. Investors may be selling off their Bitcoins, but altcoins are facing liquidity issues. The former Vice President of Digital Currency Group pointed that alt coin trading pairs in the market have nearly zero activity.

Start-ups, with projects who had collected funds could be liquidating their assets that is incidentally coordinated due to the falling prices of cryptos. The projects will try their best efforts to keep up and survive the crisis, but with such a high level of uncertainty, many will perish.

Demirors was also present in an August segment of Fast Money where she was particularly vocal about cryptos not seeing a bull run anytime soon. She compared blockchain and cryptocurrencies to the early years of the internet, saying that cutting edge technologies like blockchain are not fully understood as yet for the real potential to be tapped and will take time.

What ever her stance may be, even with the bleak immediate future she sees about cryptos, she still maintains that in the long run, blockchain technology has a potential to grow exponentially. So much that she predicts Bitcoin replacing global money supply and Ethereum taking over the world wide computing market.

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