Yuri Molkhan
Nassim Taleb explains what can easily have a major negative impact on the crypto market
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Nassim Nicholas Taleb, risk management expert, mathematician and author of several popular books on combating insecurity (“Black Swan”, “Antifragile”, “Skin in the Game” and others), is a well-known anti-crypto speaker.
He has taken to Twitter to point out what he believes to be a major weakness in the cryptocurrency market.
Taleb names the weakest point of the crypto market
Taleb tweeted that the total value of the crypto market is currently $1.5 trillion ($1.23 trillion according to CoinGecko). However, if market participants sell 1% to 4% of the cryptos it offers, that total market cap will drop by 50%, he claims in the tweet.
Most often this refers to Bitcoin, as the flagship cryptocurrency usually leads and correlates the prices of other coins – they fall when BTC falls and they rise when Bitcoin rises.
Bitcoin lover turned BTC hater
Taleb is known for his consistent and harsh criticism of cryptocurrencies, although he used to be a fan of Bitcoin and praised it when a banking crisis and the “WhatsApp revolution” hit Lebanon in 2019.
However, in 2021, he sold all his bitcoins, attributing this move to BTC’s harsh waves of volatility. “You can’t price goods in BTC,” he tweeted at the time.
Bitcoin has been pushed back by the Fed’s recent decision
Over the past two months, Bitcoin has rallied on the wave of the banking crisis that hit the US, as several major regional banks collapsed – Silicon Valley Bank, Signature Bank and most recently First Republican Bank following suit.
Bitcoin managed to reach the $30,000 mark. However, three days ago, the Fed Reserve announced another rate hike, BTC slipped below the $29,000 level, where it remains for now, trading at $28,568 according to CoinMarketCap.
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