The CEO and founder of Digital Currency Group (DCG), the parent firm of Grayscale and other firms in the crypto space, said as the massive volatility of cryptocurrencies continues, he believes the next move of the whole asset class will be dependent on what happens in the stock market in the next couple of weeks.
“The circumstances in the stock market in the next few weeks will determine the next move of the crypto market,” Barry Silbert tweeted today.
The latest statement from Silbert follows a Twitter post earlier where he described and analyzed the current meltdown in the crypto market as being healthy.
Silbert reacting to the recent crypto market crash, stated that several crypto traders have turned to long-term investors, and it looked healthy.
Stock and Crypto Market Plunge in May
May has not been a good month for both stocks and crypto as the markets have seen a number of crashes that caused billion dollars liquidation.
The plunge in the stock market was caused for many reasons, which include the concerns of rising inflationary pressures from investors, which could have caused the Fed to support withdrawal for the assets.
On the other hand, the recent volatility in the crypto market was caused by the reaffirmation of the crypto ban in China amid other regulatory issues last week Wednesday.
Although the strict measures taken by China toward crypto has been a substantial factor for the current plunge in the market, the founder and CEO of the Tesla Electric car manufacturer, Elon Musk, has been influencing the crypto prices [negatively] with series of tweets in the previous week.
Part of the shots from Musk is the revelation of his concern about the carbon footprint of the mining operations of BTC, which led to the reversal of Tesla’s decision of accepting Bitcoin as a form of payment for car purchases in the company.
Cryptocurrencies and Stocks were recovering gradually after the massive meltdown last week. S&P 500, Nasdaq futures, and Dow Jones futures saw some boost this morning.
In a similar manner, the largest crypto by market cap, Bitcoin, also rose quite fast from yesterday crash that saw the price of the asset decline to $31,179 after Huobi suspended its services and products in some particular countries.
As of the time of compiling this article, BTC is trading at $36,000 as Russia are planning to allow crypto as a contractual mode of payment in the country.