Twitter’s new owner and Tesla CEO Elon Musk has given his verdict on Bitcoin’s survival chances amidst recent downsides. Elon Musk, in a tweet on Monday, expressed optimism that the priced digital asset will survive the recent crisis but noted that it faces an uphill climb.
Bitcoin is having a year to forget with a combination of failing macroeconomics and the broader cryptocurrency market taking its toll. The Terra (LUNA) collapse earlier in the year and the recent FTX exchange fallout have all affected the price of the asset in no small way, with BTC dropping over 74% from last year’s price.
However, Elon, whose firm Tesla is a big investor in the digital currency, has hinted that BTC will bounce back and become even stronger. The Tesla CEO was replying to a tweet thread requesting predictions about Bitcoin’s price by the same time next year.
Another Long Winter?
Elon suggests the crypto winter will not be ending anytime soon and suggests crypto investors prepare for more downturns in Bitcoin price. With the recent FTX saga discouraging a wide range of investors from looking the way of cryptocurrencies, the market is naturally expected to take more downturns.
The recent FTX funds mismanagement has also raised lots of eyebrows and has brought about disapproval of digital currencies and the way exchanges manage user funds in their custody.
Financial regulators, on the other hand, will strictly scrutinize exchanges and scare investors away from the market. Strict rules would likely be imposed on exchanges to further regulate their activities in a bid to avoid occurrences like the recent FTX user exploitation, a move that will keep crypto investors at bay for the foreseeable time span.
With Binance recently intending to launch a recovery fund for affected projects, there is a profound move to salvage the menace of crypto assets. Initiatives like this will likely restore Bitcoin and the broader crypto market to their “glory days”.
