Jan Van Eck, CEO of Investment management firm VanEck Associates said the crypto and stock market needs to slow down, as a self reorganizing necessary move, after recording unprecedented growth over the past year.
Van Eck was interviewed live at the Market Alert special on CNBCs signal earlier today. The tv host inquired about this CEO’s particular view on what happened last week’s meltdown on wednesday and over the weekend.
Eck sees a clear correlation between bitcoin and nasdaq, since both assets share equivalent violent phases of cap value and growth. According to Van Eck, both asset classes have grown surpassing the value, and this brings flat trading right after.
“The markets just need a rest” singled Jan Van Eck, inferring that crypto market was way too hot, and eventually needed to cooldown.
Is Ethereum The Next Bitcoin?
Van Eck also pointed out that even after suffering bitcoin’s fall of almost 50% from its all-time high of $64,800, having in consideration that the coin is receiving some blows (China’s banning and higher regulations) the falldown is good. Such volatility even in bullish days needed to cool down.
From Eck’s point of view it’s a little too early to have any certainty on ethereum overcoming bitcoin. Eck considers bitcoin to be a ‘digital gold’, still maturing, which may bring some more price volatility.
New Ways to Grow
Ethereum blockchain is undergoing major upgrades (for example by migrating from PoW to PoS) which raises much attention, but Eck suggests to keep an eye on the competition, like the Solano project.
Following a heightened crackdown in China, bitcoin prices fell over the weekend, almost touching the $30,000 level. In a statement, the Chinese government stated that it intends to crack down on bitcoin mining and trading as a means of mitigating financial risk.
According to data given by CoinMarketCap, the asset was trading at $38,965 at the time of publication.
