Alex Mashinsky, CEO of Celsius Network, the crypto lending platform, says that inflation data can direct the flow of the digital asset market.
The current correction, which has wiped off hundreds of billions of dollars from the market, is nothing but a routine test for the industry, said Alex Mashinsky in an interview.
Mashinsky says that the crypto industry undergoes a stress test, a real stress test, contrary to what banks do, on an Excel spreadsheet once or twice a year. He says that crypto enthusiasts should take it as another stress test.
He then explains how stress is actually good as they tend to extract all the excess from the industry. They remove all the weak hands. They basically transfer coins from weak hands to strong hands, establishing a new basis.
The CEO said they are optimistic that this $25,000 is the new basis for Bitcoin. Mashinsky explained that every time we experience these things, they establish a higher high, basically defending it over the course of the period.
Mashinsky also predicts that the forthcoming inflation numbers will act as a key factor for the trend of the crypto market. He is hoping that the Federal Reserve should do whatever in its scope to reduce the Inflation that can lead to detrimental effects on risk-on assets such as digital assets.
Mashinsky then compared the Inflation with a monster saying that’s when it comes out of Pandora’s box; we can not put it back; therefore, he adds that we might have to cut many heads to battle the Inflation and triumph over it.
Mashinsky shared that he lived and grew up in Israel and has seen 400% inflation; there were changes in the prices every day. He explains that it’s their number one priority, and it doesn’t matter to them if Bitcoin or the stock market is damaged. Therefore, it becomes necessary to witness those numbers going down. “Everything I’m saying is in the context of the next set of numbers being lower and not higher on the inflation, on CPI,” he concludes.
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Source: https://www.thecoinrepublic.com/2022/05/16/celsius-ceo-alex-mashinsky-inflation-numbers-can-detect-the-flow-of-crypto-market/