Black Swan Author Names Key Crypto Market Weak Point

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Youri Molchan

Nassim Taleb explains what can easily have a major negative impact on the crypto market

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Risk management expert, mathematician and author of several popular books on fighting uncertainty (“Black Swan”, “Antifragile”, “Skin in the Game” and others) Nassim Nicholas Taleb is a well-known anti-crypto speaker .

He took to Twitter to point out what he sees as a major weakness in the cryptocurrency market.

Taleb names the weakest point in the crypto market

Taleb tweeted that currently the overall value of the crypto market is $1.5 trillion ($1.23 trillion, according to CoinGecko). However, if market participants sell 1% to 4% of the crypto offered there, that total market cap will drop by 50%, he claims in the tweet.

This is primarily Bitcoin, as the flagship cryptocurrency usually leads the way for the prices of other coins making them correlated with it, they fall when BTC goes down and rise when Bitcoin goes up.

Bitcoin Lover Converted To BTC Hater

Taleb is known for his stable and harsh criticism of cryptocurrencies, although he was a fan of Bitcoin and praised it when a banking crisis and the “WhatsApp revolution” hit Lebanon in 2019.

In 2021, however, he sold all his Bitcoins, explaining this step by the harsh waves of BTC volatility. “You can’t price goods in BTC,” he tweeted at the time.

Bitcoin Pushed Back by Recent Fed Decision

Over the past two months, Bitcoin was recovering from the wave of the banking crisis that hit the United States as several major regional banks failed Silicon Valley Bank, Signature Bank and most recently First Republic Bank ​followed suit.

Bitcoin managed to touch the $30,000 level. However, three days ago the Fed Reserve announced another rate hike, BTC slipped below the $29,000 level, where it remains for now, trading at $28,568, according to CoinMarketCap.

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