According to BitPay chief commercial officer, Sonny Singh, whenever Bitcoin’s price surges high or drops low, the situation is blown out of proportion.
“You know every time there’s good news or bad news, the market tends to overreact. And now we are seeing an overreaction of the downward side”, Singh said in an interview with Bloomberg yesterday.
He spoke about the recent changes in the prices of cryptocurrencies. Bitcoin went as high as $17,000 in the first week of this year, and then dropped below $10,000. Similarly, Ripple dropped by 28% within 24 hours on Wednesday.
When asked what Singh thought of these sudden crashes, he said it was ‘exciting’, “What’s another 25% drop amongst friends I always say right? So, it’s exciting.”
Singh explained, “So, there’s talk about, you know, Asian regulators trying to manage and maybe ban some crypto exchanges in Korea. China’s already been stopped from bitcoin trading for a while and now Korea’s in focus.”
According to him, regulators are not planning on banning cryptocurrencies but only ‘regulate [them] more’ to make the entire process legal. He believes this move will be in favor of the crypto market.
Co-host Cory Johnson agreed with Singh and pointed out that as soon as people realize that an Asian country might change its laws for cryptocurrencies, the prices take a plunge.
Singh clarified that transactions on BitPay were not affected by the recent developments in Bitcoin. He said, “So we checked, we actually had a record, obviously, December. Then for the last coupe of weeks we’ve been right on schedule to keep up with that same volume so we don’t see any difference in our volume actually.”
Singh, who has 15+ years of experience in advising tech companies, is not worried or concerned about the future of Bitcoin. Since, Bitcoin’s market cap saw 16X rise in a span of one year, a correction of 25% is not a big deal. He agrees that Bitcoin is volatile which is why it could rise to its original price in no time.
“This is the first drop we’ve seen though in the last year when a lot of new retail buyers have come in. So it’s new for a lot of new people. But people who have been in the industry for four or five years, this happens quite often actually”, Singh concluded.
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Last modified: May 20, 2020 9:10 PM