Input Output CEO Charles Hoskinson shared his thoughts on the crypto market downturn during his latest AMA.
Despite the fear and panic triggered by the threat of war and the increasingly authoritarian stance of specific regimes, he spun the situation as a necessity, or lesson to learn, to bring about the global adoption of digital assets.
“What that translates to is global adoption of cryptocurrencies above and beyond a few tens of millions of people, but billions of people…”
As such, his view is that the current geopolitical situation, as alarming as it is, is merely a step towards a more egalitarian future.
Rally brings welcome relief to battered crypto markets
The last seven days have seen crypto market capital outflows totaling $225 billion; this represents an 11% loss in value.
Early hours Tuesday saw a bottoming as bulls regained a measure of composure. Since then, inflows have totaled $119 billion, taking the current market cap to $1.763 trillion, down 20% year-to-date.
But given the broader political landscape, especially the ongoing Russian-Ukraine crisis, which saw an escalation from both sides this week, including the White House imposing sanctions against Russia, some analysts do not foresee the situation improving, at least not in the short-term.
When taken in conjunction with Bitcoin on-chain metrics, which indicate lessening demand and interest, the situation is even more dire.
Technical analyst Francis Hunt, also known as the Crypto Sniper, warned that the relief rally we are currently experiencing is not definitive evidence of a bottom. With that, he advocates investors remain defensive.
Bitcoin & Crypto, do not mistake short term temporary relief that may even drift up for a number of days, as proof of BOTTOMING.
— TheCryptoSniper (@TheCryptoSniper) February 22, 2022
The bigger picture
Giving his take on the situation, Hoskinson said he finds it curious that crypto markets appear to run in tandem with stocks. In his mind, crypto-assets should operate countercyclical to what’s happening in the macro-environment.
“It makes no sense at all because if we’re going to war, and we’re worried about inflation and chaos and tragedy you would think the opposite would be true. That, as instability occurs here, that crypto-assets are a safe haven..”
With that, Hoskinson said it’s imperative not to get caught up in day-to-day market fluctuations. Instead, he reminded us that projects with real utility and purpose will make it. And, in the long-term, “things are going to look better.”
“That’s why you have to zoom out and say, why are we here and what are we doing? And realize if there’s real use and utility and a real purpose in five years, ten years, fifteen years, things are going to look better.”
In this vein, Hoskinson said what we are witnessing today only strengthens the need for cryptocurrencies. Through digital assets, people have a degree of protection against asset seizure and authoritarianism.
Over time, more people will come to realize this, thus giving rise to global crypto adoption.
The post Charles Hoskinson calls on crypto investors to “zoom out” amid market turmoil appeared first on CryptoSlate.
