Thursday, July 29

Three Arrows Capital’s CEO Addresses Reasons for Bitcoin’s (BTC) Drop

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su zhu

Su Zhu, CEO of crypto investment fund Three Arrows Capital, explained the reason for Bitcoin’s collapse in late May and his views on the next direction of the crypto market.

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In a new interview on the Uncommon Core podcast, Zhu says that the interplay between Bitcoin’s rising price action and a series of bearish news has triggered massive sell-offs that have halved Bitcoin’s value.

Zhu referred to China’s crackdown on crypto miners and Elon Musk’s statements on Bitcoin’s environmental impact:

“I guess it was a bit of a downside from China at the time, especially on mining, but then there was a lot of news in the US about Elon’s tweets about Tesla and Bitcoin energy use. These were not the first reasons, but they were important nonetheless. From that point on, investors saw it as an opportunity to make a profit. So I think it’s a climax and also a result of the fact that people buying from the start were saying, ‘OK, if I wait I can get it for a much lower price, so I’ll wait’.

For this reason, I think that these two factors are a climax. But if you look at the way the market bounces, you can see that the buyers are still there. It only matters what price they will buy. They had to buy at higher prices at the start and middle of the bull rally and this time they managed to buy at lower prices than before.

As a result, there is still a tremendous amount of buying demand.”

In the interview, Zhu stated that “the bull run is definitely not over.” According to the crypto expert, the latest survey showing that hedge funds are planning to pour hundreds of billions of dollars into crypto is also coming across as a mega bullish catalyst that could immensely strengthen the digital asset markets.

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