- Tram Ho
Tech investor Chamath Palihapitiya, who just two years ago eloquently claimed Bitcoin would replace and predicted its price to reach $200,000, is now taking a much more cautious stance on the cryptocurrency.
“Cryptocurrency is dead in America,” Palihapitiya said on a show with CNBC.
He blames the collapse of cryptocurrencies largely on regulators, who have recently stepped up their anti-crime activities in the sector.
The US Securities and Exchange Commission (SEC) is one of the agencies that is stepping up activities to regulate this sector. Gary Gensler, Chairman of the SEC, said that cryptocurrency trading should comply with the strict regulations of the US securities laws. During a hearing among lawmakers, Gensler also connected the collapse of Silicon Valley Bank to the cryptocurrency industry.
“You see, Mr. Gensler even blamed the current banking crisis on cryptocurrencies. The US authorities are determined to put their noses on this type of property,” Palihapitiya said.
In fact, the SEC has stepped up enforcement of controls on the cryptocurrency sector, forcing the closure of projects that are accused of being sold illegally. In February, the SEC also proposed changing the rules in the cryptocurrency sector to increase control. In March, they sounded the alarm about problems with Coinbase, and just last week, the SEC charged crypto trading platform Bittrex and its former CEO with operating undercover.
Coinbase CEO Brian Armstrong told CNBC that his company is preparing for a years-long legal battle with the SEC and is also considering moving its headquarters elsewhere if the US does not come up with specific, clear regulations. . Meanwhile, Bittrex announced it was shutting down its operations in the US due to “uncertainty” in the ongoing regulations.
At the moment, Bitcoin is still the most valuable digital currency. At its peak in November 2021, its price reached 69,000 USD / coin when the Fed kept interest rates close to zero and the US Government continuously pumped money to save the market. However, when the Fed started raising interest rates, cryptocurrencies and many other assets sold off.
In early 2021, Palihapitiya predicted Bitcoin would rise from $39,000 at that time to $100,000 and then $200,000. However, he also said that that price can be reached in 5 years, 10 years or some time in the future but it will definitely come. By the end of 2021, when Bitcoin peaks, Palihapitiya claims that it will replace gold.
Bitcoin is currently trading for $27,000, about 60% off its peak.
Source : Genk