All the liquidation and bankruptcy events that followed the Bitcoin (CRYPTO: BTC) market downturn will prove to be healthy for the crypto market in the long run, according to Shark Tank investor Kevin O’Leary.
What Happened: “Many crypto operators, particularly lending platforms, have never operated it with such volatility before,” O’Leary said in a recent interview with YouTuber Meet Kevin.
Crypto lenders like Voyager Digital Ltd. (OTC:VYGVF) declaring bankruptcy is “nothing new” in the story of leverage, he added. These lenders were used to slow growth with Bitcoin at $800 almost a decade ago.
As the leading crypto asset made its way ahead of $60,000, these platforms became “really aggressive in using leverage,” O’Leary explained.
In his view, a whole series of these actors will get crushed to zero over the next few months. However, he doesn’t necessarily see that as a bad thing. The ongoing scenario is “so good for the market” because it educates the business models that aren’t going to work.
“It’s like taking a big spatula from the sky and scraping all the crap out of the market,” he said.
See Also: Is Bitcoin A Good Investment?
Price Action: According to data from Benzinga Pro, BTC was trading at $20,520 at press time, gaining 2.8% over 24 hours.
Photo: By The Walt Disney Television on Flickr
