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Crypto industry veteran Bobby Lee says that bad actors ignorant of regulation have to be expunged from the market.
In a new interview with Bloomberg Markets Asia on Yahoo Finance, Lee, co-founder of Hong Kong-based crypto exchange BTCC, reveals what price he expects Bitcoin (BTC) to bottom out at the end of the bear market.
“[Bitcoin] has crashed down to below $16,000. Previously, I’ve said that it will probably go to $15,000. Given the magnitude of the FTX blow-up, it could go down to $13,000 or even touch $10,000. That’s going to be a very, very drastic crash. There has to be more bad news to come out.
As we know in the market, in the last week or so, we’re looking at the troubles of Genesis, one of the prime brokers in the crypto market. So if something bad happens with that or if something bad happens with the USDT stablecoin, then could see much worse prices coming up in a few weeks.”
Lee says as a young industry, many kinks still need to be worked out, including a lack of regulations and plenty of bad actors. He says it’s a good thing that the FTX collapse happened now rather than a few years into the future.
“The crypto market is cyclical, just like every other market. And these bad actors – and I’m talking about FTX and these exchanges that are not run well because of lack of regulation and the regulation arbitrage – these bad actors have to be flushed out. This is again, this is a very, very young market. Crypto exchanges have been around for roughly 10 years. And for a global asset class, 10 years is just the blink of an eye. So we need more regulation globally and it’s going to take decades for this market to mature.
We just finished our first decade. We’re now in our second decade. And in a way, it’s kind of good that the FTX thing happened now as opposed to a few years later. You could argue that it’s already happened too late. It’s already in billions of dollars in losses and stuff like that. But if the issues had not come up, if it had kept rolling for another few years, it could have been worse in four, five, 10 years’ time.
So we got to just get past this early stage of amateurs in crypto.”