All the liquidation and bankruptcy events that followed the Bitcoin BTC/USD market downturn will prove to be healthy for the crypto market in the long run, according to Shark Tank investor Kevin O’Leary.
What Happened: “Many crypto operators, particularly lending platforms, have never operated it with such volatility before,” O’Leary said in a recent interview with YouTuber Meet Kevin.
Crypto lenders like Voyager Digital Ltd. VYGVF declaring bankruptcy is “nothing new” in the story of leverage, he added. These lenders were used to slow growth with Bitcoin at $800 almost a decade ago.
As the leading crypto asset made its way ahead of $60,000, these platforms became “really aggressive in using leverage,” O'Leary explained.
In his view, a whole series of these actors will get crushed to zero over the next few months. However, he doesn’t necessarily see that as a bad thing. The ongoing scenario is “so good for the market” because it educates the business models that aren’t going to work.
“It’s like taking a big spatula from the sky and scraping all the crap out of the market,” he said.
See Also: Is Bitcoin A Good Investment?
Price Action: According to data from Benzinga Pro, BTC was trading at $20,520 at press time, gaining 2.8% over 24 hours.
Photo: By The Walt Disney Television on Flickr
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