Ross Gerber, the CEO of Gerber Kawasaki Wealth and Investment Management, has pinned the blame for the recent market crash on internal "grift" that has poisoned the cycle.
Gerber has argued that the Bitcoin downturn was inevitable due to a flood of speculative "scam" projects that siphoned capital away from quality assets, burning retail investors and killing the market's momentum.
The 'grifter' cycle theory
According to Gerber, the mechanics of this crash are rooted in a recurring pattern seen in every positive Bitcoin cycle. As the price of the market leader rises, it attracts bad actors looking to capitalize on the hype.
"The crooks come in with scam/shit coins and burn everyone," Gerber wrote.
He argues that the explosion of low-utility, high-hype tokens acted as a parasite on the ecosystem.
Instead of capital flowing into Bitcoin and staying there, it was diverted into these speculative avenues.
There were "no new catalysts" to drive the market higher when these eventually collapsed.
"Now there is no new catalysts. Just bag holders," Gerber noted. "Selling begets more selling due to leveraged idiots."
A buying opportunity for 'adults'
Despite the harsh critique of the market's "crooks," Gerber remains a confirmed Bitcoin bull.
His firm, Gerber Kawasaki, holds Bitcoin alongside its top equity positions, such as Nvidia (NVDA), viewing it as a legitimate asset class distinct from the "crypto casino."
Alex Dovbnya
Caroline Amosun
Tomiwabold Olajide