While Bitcoin (BTC) is going through a critical process due to macroeconomic conditions and the FTX crisis, a leading manager has claimed that the worst-case scenario is not over yet.
Swyftx CEO: More ‘Black Swan Cases’ Will Come!
According to Bloomberg news, Swyftx CEO Alex Harper made statements that caused concern for the crypto currency market. Harper warned that new ‘Black Swan’ Cases may emerge in the coming period that will pull Bitcoin (BTC) and altcoin prices back to rock bottom levels. The crisis situation that occurs with the emergence of an unexpected, improbable situation is called the “Black Swan Effect”. The COVID-19 pandemic of Örek is an example of this situation.
The FTX crisis has also been described as a Black Swan Case in the cryptocurrency market. The manager of the Austrian-based stock exchange, which has recently made numerous layoffs, warned that the sector will face more crises. Swyftx, one of Australia’s main stock exchanges, had recently been on the agenda with news of layoffs.
The company laid off 90 employees, representing 35% of the entire workforce. The huge crypto currency exchange Kraken also laid off a significant part of its staff last week. After the sudden collapse of FTX and the alarming statements of Sam Bankman-Fried, the crypto currency sector entered a deep crisis. As previously reported, Binance CEO Changpeng Zhao recently made striking statements on this issue. Zhao believes that the collapse of the stock market could potentially trigger a domino effect. Zhao pointed out in a tweet that mass layoffs are increasing in a bear market. The manager claimed that this situation is related to the principles of risk management.
Critical Remarks from the Author of ‘Black Swan’!
Even before the collapse of FTX, the famous author of the book “Black Swan” Nassim Nicholas Taleb predicted that the cryptocurrency industry would literally experience an ice age. New York University professor and author of the book “Black Swan” Nassim Nicholas made striking statements about Bitcoin on CNBC’s Squawk Box program. Taleb shared his opinion on the state of the American economy and whether the Federal Reserve has made the right choices in dealing with economic concerns and inflation.
According to Taleb, the Federal Reserve’s monetary policy in the past has helped create “tumors like Bitcoin”. Bitcoin emerged largely due to instability and economic concerns in the banking system. Stating that the US economy is in danger of recession, the expert noted that the growing problems with the economy are partly due to the inexperience of the younger generation. The academic, who likened Bitcoin to a tumor, claimed that BTC would fail in the face of traditional finance.
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