Whatever happens in the stock market in the coming weeks, according to Barry Silbert, would “completely” decide crypto’s next step.
If cryptocurrencies begin to witness extreme uncertainty, Barry Silbert, the founder and CEO of Digital Currency Group (DCG), the parent company of Grayscale and other crypto companies, claims that the stock market‘s next step will decide the asset class’s next move.
“Where the crypto market goes from here is completely dependent on the stock market over the next couple weeks,” Silbert tweeted today.
Silbert’s new comment comes after he characterized the ongoing crypto market meltdown as “safe” in a tweet earlier this week.
Silbert reported that several crypto traders have converted to long-term buyers in response to the recent market collapse, which he believes is reasonable.
In May, the cryptocurrency and stock markets all dived.
This month has not been kind to crypto and bonds, as both exchanges have seen a string of crashes that have resulted in the liquidation of billions of dollars.
Several reasons contributed to the stock market‘s decline, including investors’ concerns over increasing inflationary pressures, which might force the Federal Reserve to withdraw its funding for the securities.
The latest uncertainty in the crypto industry, on the other hand, was sparked by China’s long history of misinformation about the crypto ban and related regulatory problems, which resurfaced last Wednesday.
Despite China’s tough stance on cryptocurrencies being a factor in the recent market downturn, Elon Musk, the CEO and founder of famous electric carmaker Tesla have continued to influence crypto prices with a series of tweets over the past week.
Musk’s jab at the commodity involves his sudden indignation over Bitcoin’s mining operation’s carbon footprint, leading him to declare that Tesla will reverse its decision to allow Bitcoin payments for its cars in February.
Recovering in Sections.
Stocks and cryptocurrencies were slowly regaining ground after a huge drop last week. This morning, Dow Jones futures, S&P 500 futures, and Nasdaq futures all saw a small gain.
Similarly, Bitcoin (BTC), the most valuable cryptocurrency by market capitalization, has risen dramatically from yesterday’s low, when it fell to $31,179 since Huobi halted its goods and services in some countries.
At the time of writing, Bitcoin was trading above $36,000 as Russia pushes to enable cryptocurrencies to be used as a contractual means of payment.