Compounding this are concerns from crypto market participants over the viability of so-called stablecoins, which are touted as being pegged to the US dollar and are viewed as a safe store of value away from the typical crypto volatility.
This week, the third-largest stablecoin, TerraUSD, de-pegged from the dollar, causing a cascade of selling action that saw the asset fall as low as 30 US cents. Similarly, Tether, the largest stablecoin with a market capitalisation of around $137 billion, appeared shaky, with its value uncharacteristically dipping slightly to 99.3 cents.
Roberts said he believed a possible collapse of stablecoins would have no bearing on the long-term investment case for Bitcoin, saying that it could even mean sellers might rush into safer looking assets, such as Bitcoin.
“If you zoom out and you look at Bitcoin, nothing’s changed. There’s still only ever going to be 21 million of them, you still can’t stop it, no one can create more, no one can censor it. Given the current macro environment, I don’t think they are characteristics that are losing value,” he said.
Canaccord analyst Joseph Vafi told clients the company was continuing to execute solidly against its plan and “can deliver strong profitability even if Bitcoin price stays at current levels for the time being”. However, due to the broader market pullback, the analyst lowered his price target to $US14.