Celebrity investor Kevin O\u2019Leary\u00a0(aka \u201cMr. Wonderful\u201d on ABC TV series \u201cShark Tank\u201c) is predicting that a massive capitulation event is coming for the crypto market.\u00a0<\/p>\n
On July 6, during an interview on YouTube series \u201cMeet Kevin\u201d, O\u2019Leary claimed that the crypto markets are in danger of a massive capitulation event that will trigger further panic among investors. O\u2019Leary argued that the market has yet to reach a bottom, despite the collapse in prices over the past two months.\u00a0<\/p>\n
The Shark Tank investor also predicted that a \u201cbig guy\u201d in the crypto industry would go to zero, which he called \u201cvery healthy\u201d for the market.\u00a0<\/p>\n
As reported by the Daily Hodl, O\u2019Leary said,<\/p>\n
There\u2019s no big guy who has gone to zero yet, and I think that\u2019s still to come. Hard to say who it is because it\u2019s going to be because of leverage and some kind of relationship in a counterparty holding that they have not disclosed, and I\u2019m just speculating right now, but that would be very healthy for the market to have that happen.\u00a0<\/p>\n
O\u2019Leary commented on crypto brokerage firm Voyager Digital, which filed on July 6 for Chapter 11 bankruptcy protection after having a large-capital borrower default on a loan. O\u2019Leary said the firm was too small to constitute his \u201cbig guy\u201d going to zero, and said other crypto companies that have failed so far were likewise \u201cirrelevant\u201d in terms of market cap.\u00a0<\/p>\n
O\u2019Leary warned that the crypto markets could undergo a massive capitulation event in the near future that would create even greater uncertainty for investors. However, he gave the caveat that such an event would represent a great buying opportunity:<\/p>\n
I like a big, big panic event. That\u2019s always been a great way to bottom. It\u2019s towel throwing. It\u2019s capitulation. It\u2019s massive volume. It\u2019s total panic in the streets and always a great buying opportunity.<\/p>\n
While the famed investor said it was difficult to predict when the event would happen, he argued that it would be a \u201cvery good thing for this industry.\u201d He said a capitulation event would wipe out the broken business models and help the market unload its overly-leveraged speculation.<\/p>\n