Analyst: The Worst Scenario in Crypto Money Hasn’t Happen Yet!

The sharp decline that started in Bitcoin (BTC) on March 12 has also greatly affected all other digital currencies including Ethereum, XRP and Litecoin. With the effect of this drop, the biggest cryptocurrency fell to $ 3,600 and Bitcoin managed to recover in the meantime.

Texas West Capital trader and crypto analyst Scott Melker warned that the worst scenario has not yet taken place due to the fear caused by the new coronavirus. The analyst suggested that the collapse on March 12 posed important problems in the young crypto market, and that many exchanges and projects will take their place in the dusty pages of history in the near future.

Thursday’s crypto crash exposed the massive dysfunction in what has been proven to be a very immature space. The fallout has not even begun – exchanges and projects will likely start disappearing in the near future.

– The Wolf Of All Streets (@scottmelker) March 14, 2020

The recent collapse in the cryptocurrency market, which reflects the emotion in the global stock markets, has also greatly destroyed and shattered the hypothesis that cryptocurrencies will grow and shine, taking power from failures in the global financial system, and that they will be the gateway to the next major financial crisis. The coronavirus epidemic, which influenced the whole world, directed people to cash in order to meet their basic needs rather than safe harbors.

“Bitcoin (BTC) Will Survive”

While Melker expects global economic turmoil to destroy the young crypto industry, he predicts that the market’s first and largest cryptocurrency, Bitcoin, will survive. The analyst expressed this view as follows:

Bitcoin will be fine. The crypto industry has suffered a little in the foreseeable future in my mind. I’m not talking about the price of cryptocurrencies. People will continue to buy and sell. The trade is good, however, the basic foundation of the crypto has been damaged.

Melker also remains optimistic about the basic technology of Bitcoin, Blockchain. Various solutions based on distributed ledger technology enable companies to create smart contracts, transform supply chains, overhaul bureaucratic processes, verify documents and manage sensitive data. Melker expects this technology to host several large companies and projects in the future.