Blaming the Hedge Funds and Institutional Investors
Meta’s (formerly Facebook) Lead Product Manager, Dare Obasanjo, has blamed institutional investors for the overvaluation of cryptocurrency, bitcoin, stating that there was no bigger fool in the crypto market.
A bigger fool or greater fool is someone that pays a higher price to purchase an overvalued asset acquired by an investor, who hopes to resell and profit highly from the asset – at an inflated cost against initial purchase price – before it crashes.
Obasanjo’s statement on Saturday comes at a period when retail and institutional holders of bitcoin suffered a loss of $81 million in four days, as sell off continued to prevent the growth of BTC value due to expectation of a price decline.
And since bitcoin hit an overvaluation of $68,990.90 (All-Time High) it has been depreciating in value, as prospective investors were not willing to pay a higher price for BTC because of bearish sentiment (negative growth) surrounding the coin.
This means there was a shortage or declining in number of investors willing to buy the overvalued bitcoin, reflecting Obasanjo’s statement that there wasn’t a greater fool, while responding to reports that global tech institutional investor, Tiger Global Management, would no longer focus on backing large, late-stage startups preparing to go public.