Famous investor Ruchir Sharma has compared the decrease in BTC prices to the decline of Amazon.com. The Chairman of the firm, Rockefeller International, believes BTC will rise again as Amazon did.
Although he has high hopes for the top cryptocurrency, Sharma anticipates the downturn to last for another period. He noted the crypto winter might last for six extra months.
Ruchir Sharma Shows Optimism About Bitcoin
Ruchir Sharma has joined the group of well-known figures that support BTC’s future. Sharma indicated support for a monetary system independent of the USD.
The renowned businessman claims that while no currency can displace the Dollar, Bitcoin may be one in the future. He said:
“There can be no more reliance on the USD. The world needs another currency that can be used for transactions and is a little more steady in value. In three to five years, Bitcoin will become a more reliable asset.”
Additionally, the pro-Bitcoiner compared the price of Bitcoin to Amazon (AMZN). He said BTC’s price might move like that of Amazon years back.
The renowned investor claimed that the resurgence of AMZN may be mirrored in BTC’s price. AMZN had previously witnessed a 90% slump.
In the 2000s, the dot-com bust caused a significant decline in Amazon’s stock valuation. However, the shares continued to increase in value by about 300 times during the following 20 years.
Crypto Winter May Last For Another Six Months
According to the Rockefeller Chair, BTC’s fall is still ongoing. He noted that the brutal cryptocurrency winter might last for another six months.
Due to the downturn in U.S. equities, there may be more declines throughout the next six months. According to him, bear markets typically last a year and see a 35% decline in stock prices.
Sharma said this present bear market has just been in motion for a year. Also, the S&P 500 has only dropped by 20%.
Furthermore, Sharma also brought up the recent action of the Fed Reserve. He stated that he did not anticipate the risk appetite to open so soon. He stated that:
“I am not ready to declare the bottom for BTC and other cryptos yet. The global risk appetite is still under the influence of the American bear market regime.”
His words come as BTC has made incremental progress above $20k, the critical threshold. At the time of writing, BTC was trading at $20,420. It is down by 4% in the past 24 hours.
Earlier, Sharma cautioned that governments would not be successful in controlling cryptocurrency. He claimed that one approach government uses to control BTC is excessive money printing. However, Sharma claims this will not be successful.