WASHINGTON (Sputnik), Ekaterina Chukaeva – Excessive leverage is a major reason behind the recent disruptions across the largest global crypto-trading platforms, Bobby Ong, the co-founder and COO of CoinGecko, one of the world’s leading cryptocurrency data aggregators, told Sputnik.
He also said that even despite the fluctuations, the Bitcoin price of $100,000 is still possible.
Earlier in the day, cryptocurrency platforms such as Binance and Coinbase saw service disruptions after cryptocurrencies from Bitcoin to Ethereum plunged. Bitcoin, in particular, briefly dived below $30,000 after China banned financial and payment companies from providing services related to cryptocurrency transactions.
In recent weeks the crypto market has been “in very frothy territory,” with prices having gone up too much and too fast, according to the Bitcoin expert.
“The market was searching for a reason to decline and Elon Musk’s tweet that Tesla was no longer going to accept Bitcoin, and then this news from China banning financial institutions from dealing with crypto businesses are the major catalysts providing the downfall,” Ong said.
When asked whether Bitcoin can still reach $100,000 in 2021 after all these disruptions, he replied that it is always hard to make predictions.
Fundamentally, nothing has changed for Bitcoin and Ethereum, Ong noted.
“It’s just the price that has gone down – they can still be trusted. There are a lot of developments being planned for Ethereum this year as it moves towards Ethereum 2.0,” he said.
In April, Bitcoin price jumped up to a historic high of over $64,000. However, a month later, the cryptocurrency started to fall after Musk said that Tesla would stop selling electric cars for Bitcoin, citing concerns over fossil fuel use during mining. In the wake of the Bitcoin dive, the tech enthusiast was accused of manipulating cryptocurrency markets.