Kraken Co-CEO And Barry Silbert Warn Of Crypto Bubble; 99% Tokens Could Tank

Concerns about a potential crypto bubble have intensified over the past few days, with industry leaders like Arjun Sethi, co-CEO of crypto exchange Kraken, voicing alarm over the current state of the digital asset landscape. Sethi Warns Of Short-Term Crypto BubblesIn a recent interview with Fortune at the Brainstorm Tech conference in Park City, Utah, Sethi acknowledged the presence of a bubble when examining short-term market trends. During the panel discussion, Sethi noted, “If you look at it quarter by quarter, the answer is yes, we get into those bubbles all the time.” Since the beginning of the year, the market’s leading cryptocurrency, Bitcoin (BTC), has achieved multiple all-time highs, contributing to a total market capitalization exceeding $4 trillion for the first time. This surge has been fueled by pro-crypto regulations stemming from President Donald Trump’s administration and crypto-focused initial public offerings (IPOs) in the United States from firms like Circle (CRLC) and the crypto exchange Bullish (BLSH).The current enthusiasm in the crypto market can be partially attributed to its correlation with the stock market, particularly following record highs in the S&P 500 since President Donald Trump took office. Some argue that these developments provide investors with exposure to cryptocurrencies that may not be accessible through traditional brokerage accounts. However, skeptics caution that many of these firms are merely capitalizing on the hype, leading to unsustainable valuations that could result in a market crash.Silbert Predicts Most Digital Assets Will CrashRecent data indicates that there may already be signs of a downturn. According to Architect Partners, a crypto advisory and financing firm, the average stock price of 15 digital asset treasuries dropped by 15% last week, raising red flags about the stability of the market.Conversely, Barry Silbert, founder of Digital Currency Group (DCG), expressed a more optimistic outlook during the same panel. He acknowledged the presence of “overvalued assets” within the crypto space, stating, “There’s a whole lot of crap in crypto right now, which is overvalued. I think 99% of crypto is absolutely going to zero.” Further complicating the landscape, Elliott Management, an activist investment firm, has also raised alarms about the cryptocurrency market. In a recent investor letter, the firm pointed to the rapid inflation of the so-called crypto bubble, attributing it in part to perceived endorsements from the White House during Trump’s administration. Elliott Management warned that the dramatic rise in crypto prices poses risks not only to individual investors but also to the overall economy. They caution that an impending collapse of this bubble could have unforeseen consequences, potentially destabilizing financial markets at large.Featured image from DALL-E, chart from TradingView.com Weiter zum vollständigen Artikel bei NewsBTC Weiter zum vollständigen Artikel bei NewsBTC