Some industry experts are pointing to the recent crypto crash as a “healthy” correction for the market even though many investors are in too much pain right now to be able to agree with this view.
According to a report by Fortune, industry players are reserving a positive outlook for cryptoassets despite the recent market correction.
A newsletter from Lucas Outumuro, head of research at IntoTheBlock, claimed that the crypto market went through a historic crash in June, largely as a result of forced selling and liquidity troubles. In the June 17 issue of their weekly newsletter, the researcher said that the market crash has resulted in “one of the worst quarterly price performances of the crypto space,” and noted that it was too early to call a bottom.
Despite the tanking Bitcoin price, Corey Miller, growth lead at crypto exchange dYdX, remained optimistic. He told Fortune that “this is healthy.” Miller argued that the market correction was removing “excessive risk” from the industry.
While it does reveal many interconnected links within crypto, these wipeouts support the idea that crypto as a whole remains resilient to existential risks.
Michael Safai, managing partner at cryptocurrency trading firm Dexterity Capital, told Fotune:
Things are really shaky right now and it’s going to take a while for things to stabilize. People are watching and waiting to see if something else will topple… There’s going to be a lot of shaking up to be done… This era of being able to get exceptional yield for nothing is over. This is when a lot of leverage is going to get pulled out of the system, and this will ultimately make the crypto ecosystem safer.
Jason Urban, co-head of Galaxy Digital Trading, said that the market was in a “hangover.”
He then added:
I think for the next three to six weeks, people are going to be figuring out what exactly has happened, and who is well healed and who is not. That’s the first step… there are going to be projects that don’t make it, and there are going to be projects that become wildly successful.