On May 15, Erin Voorhees, CEO of instant cryptocurrency platform ShapeShift stopped for an interview with Bloomberg TV and voiced his belief that crypto is starting to exercise its dominance in the world. Speaking on the Bloomberg Markets: What’d You Miss segment, Voorhees touched on the current rally that the crypto market is experiencing, attributing most of it to the incidence of crypto bubbles and the inherent volatility that digital assets have with them. Bitcoin, in particular, has broken new heights and is currently on a bullish run that hasn’t been seen since early 2018.
According to Voorhees, a lot of the crypto bubbles that we see right now are more of cyclical events. As such, investors are realizing that and are beginning to feel more comfortable with making the move back to investing in digital assets whenever they think that the end of a bear market is close by.
However, he also added that the optimism from traders is also a primary function of their individual decisions. At the end of the day, no one knows how investors choose to do business better than the investors themselves. Voorhees was also quizzed on whether he believed the recent bubbles and other activities are being incited by something more structural.
In his response, he stated that bubbles are always very important to cryptocurrencies.
In part, he said:
“There have to be bubbles in crypto because crypto is taking over the world and it’s not just going to advance 5% a month without end. If it did that, people would start buying it up and front-running it and turning into a bubble. So there’s no way to go from a zero dollar asset into one that is worth trillions without massive speculation and massive volatility in cyclical bubbles.”
Bitcoin (BTC) and other altcoins sure have been on the uptick lately. At press time, 8 of the top 10 cryptocurrencies have seen positive changes in value over the last 24 hours, while the total cryptocurrency market cap is holding steady at $244 billion (according to data from CoinMarketCap).
Numerous industry insiders have also expressed optimism about the crypto rally. On May 9, Galaxy Digital CEO Mike Novogratz stated in an interview with CNN that he believes Bitcoin will cross the $20,000 mark in 18 months.
He also declared that $6,000 should be a stall point for Bitcoin, while $10,000 should be the next one. However, while he was full of optimism for Bitcoin, he wasn’t so sure about how other crypto assets would perform or whether they’ll see similar upticks in value within that time.