Lekler believes that the negative sentiment in the crypto market is temporary, and investors' fears regarding further declines of the first cryptocurrency are greatly exaggerated.
According to the top manager, the correction of the first cryptocurrency is largely related to the characteristics of companies that use borrowed capital to purchase Bitcoin. In August, the shares of organizations such as Metaplanet and Strategy — the largest public corporate holder of $BTC, — fell in price significantly more than Bitcoin itself. However, Lekler explained this by the financing structure of the companies.
The current dynamics of the crypto market are characteristic of periods of large-scale sell-offs, when the market sheds excess leverage. During such times, companies with Bitcoin reserves face increased investor pressure, but after the trend reversal, it is precisely these companies that can demonstrate the fastest growth, believes Lekler.
The top manager compared the situation to the bear cycle of 2022, when the liquidation of margin positions cleared the market of excessive speculation and created a foundation for a new growth phase of the first cryptocurrency.
"When sellers exhaust their possibilities, Bitcoin could rise sharply even without significant news background," stated LeClerc.
In his opinion, the situation is already showing signs of bottoming. At the end of the second quarter, corporate investors began reallocating capital from Bitcoin-related assets into stocks of companies working with artificial intelligence, creating additional selling pressure. According to LeClerc, many threats, including risks associated with the development of quantum computing, are overestimated, and the panicked sentiment of traders does not reflect the fundamental state of the first cryptocurrency.
Earlier, Blockstream co-founder and CEO Adam Back allowed for the possibility of Bitcoin's market capitalization growing to $200 trillion. As one of the reasons, the businessman named the activities of companies like Strategy, which are actively accumulating the first cryptocurrency.
