The CEO of crypto lending platform Celsius Network thinks inflation data could determine the next direction of the digital asset market.
In a new interview with InvestAnswers, Alex Mashinsky said the current correction, which wiped hundreds of billions of dollars off the market, is a routine stress test for the industry.
“Our industry is going through a stress test, a real stress test. You should consider this another stress test…
Stress tests are actually good… These tests take all the excess in the industry. Lifters are cleared. All weak hands are eliminated. Basically, money is transferred from weak hands to strong hands and a new foundation is created. Again, I hope $25,000 is created as a new foundation for Bitcoin. You can see that every time we go through these tests, we create a higher peak and basically maintain it over time.”
However, Mashinsky added that the upcoming inflation figures will be an important factor for the trend of the crypto market. According to Mashinsky, the Federal Reserve will do its best to curb inflation, which can have detrimental effects on risky assets like cryptocurrencies.
“Inflation is a beast. You can’t put it back as soon as Pandora comes out of its box, so you may have to do a lot to fight inflation.
I lived and grew up in Israel, we had 400% inflation… Prices changed every day. We don’t want that, and basically the Fed is determined to fight inflation. They don’t care what the damage will be to Bitcoin, the stock market, or anything else, so that’s their number one priority. That’s why it’s so important to see those numbers drop.”
https://www.youtube.com/watch?v=fPCXS9ychZg
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Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, KoinFinans and the author of this content cannot be held responsible for personal investment decisions.