16 May 2022 05:07, UTC.
Reading time: ~2 m
The CEO of cryptocurrency lending platform Celsius Network believes that inflation data may well determine the direction of the digital asset market.
In addition, in an interview with InvestAnswers, Alexei Mashinsky noted that the current correction, which has taken hundreds of billions of dollars out of the market, is a routine stress test for the industry.
Our industry takes a stress test, a real stress test, unlike the banks who do it in an Excel spreadsheet once or twice a year. You have to think of it as another stress test…
They’re actually good…because they take away everything unnecessary in the industry. They eliminate leverage, weak hands. In essence, they move the coins from weak hands to strong hands and create a new basis.
I hope we set $25,000 as the new basis for bitcoin, and every time we go through these things, you can see that we’ve set an upper high and protect it.
Maszynski said that the upcoming inflation data will be a major factor in determining the trend of the cryptocurrency market. He said he expects the Federal Reserve to do everything it can to curb inflation, which could have a detrimental effect on risky assets, including cryptocurrencies.
Inflation is like a monster. The minute it’s taken out of Pandora’s box, you can’t put it back in, so we’re going to have to cut a lot of heads off to fight inflation and defeat it.
I lived and grew up in Israel, and we had 400 percent inflation…Prices were changing every day. We don’t want that, and the Fed has to fight inflation.
But they don’t care how much damage is done to bitcoin or the stock market or whatever, they have a different number one priority. That’s why it’s so important to see those numbers come down.
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