Chairman of North Island Glenn Hutchins has spoken to CNBC, offering them one of the reasons why major tech stocks and Bitcoin have been falling hard recently.
Hutchins reckons that the reason is that investors have been getting rid of their BTC in order to compensate for their losses in other aspects of their crypto investments.
Similarly, tech stocks (Nasdaq 100) have been falling, he said, as people are in need of liquidity, so they sell them, while still considering them to be good assets.
"The reason why #Bitcoin has gone down so much is because people have been selling Bitcoin to cover their losses in other parts of the crypto-universe," says North Island Chairman Glenn Hutchins. "There's lots of room in historic data for this market to come down." pic.twitter.com/hRrwVqbsfc— Squawk Box (@SquawkCNBC) May 25, 2022
Among other reasons for the crypto market fall, led by Bitcoin, is the collapse of the Terra chain, when its native token LUNA dropped from $115 to well below zero, and the UST stablecoin lost its USD peg.
At the moment, the LUNA community has voted to implement founder Do Kwon's proposal to split the chain. The battered blockchain will be renamed Luna Classic (with the token LUNC), and Terra will start over like new with LUNA being its native coin. The UST stablecoin will not be resurrected on the new Terra chain.