Barry Silbert, CEO and founder of Digital Currency Group – the parent company of Grayscale, Genesis Trading, and more, says they are buying Bitcoin as the world’s most popular crypto trolls 52-week lows. The tweet has been liked almost 12,000 times – probably by beleaguered investors in BTC.
Feels like we have hit max pain and uncertainty in the crypto market
We’re buying BTC here. Let’s go!
— Barry Silbert (@BarrySilbert) June 17, 2022
Bitcoin recently sank to around $17,800 breaking through $20K support. The dive lower has been driven by holders with leveraging unwinding positions along with investors looking to preserve capital as several platforms halted redemptions and concerns of contagion grew. Earlier today, Bitcoin recovered the $20,000 hurdle but it is not clear if it will be able to hold above this benchmark as crypto concerns remain, alongside floundering traditional markets as people rush to the exits.
Earlier in the week, Silbert voiced his confidence in the broader digital asset market stating:
“We’ve seen a number of down cycles in crypto before and while they’re never easy, this is a period of opportunity. I’m encouraged by the close collaboration we’re seeing this week and believe the industry will emerge stronger than ever.”
Today on the pages of WSJ.com, to former government agency officials, William M. Isaac, former FDIC Chairman, and Thomas Vartanian, former FSLIC GC, raised an ominous warning, stating:
“If crypto continues to penetrate financial and banking markets, the loss of confidence from the inevitable crash – of an instrument that often has no intrinsic value – as well as its contagion impact could be devastating. Is crypto about to crash the U.S. banking system today? No. Will it cause massive problems if allowed to continue spreading without proper regulation and controls? Bet on it.”
The two former officials were probably reflecting on their experience with the savings and loan crisis from many years ago, a challenging period in the US that of which many Bitcoin buyers are unaware.
So is it time to call all clear? No telling with crypto, but what is certain is more regulation is coming and the industry will be better for it – if policymakers get it right.