Snowden, who is famous for unveiling top-confidential documents showing the US and UK surveillance operations, said on his twitter account on 13 March:
“This is the first time in a while I’ve felt like buying bitcoin. That drop was too much panic and too little reason.”
His comments came after what is believed to be the sharpest ever intra-day plunge seen by Bitcoin yesterday.
Cryptocurrencies continue to suffer huge losses across the board, as they move in parallel with traditional markets that are impacted by panic Coronavirus.
Vijay Ayyar, head of business development at crypto exchange Luno, said:
“Investors are moving out of any risky assets. Even though Bitcoin is compared to gold as a safe haven asset, it’s very under-penetrated and is considered more as a risky asset to hold at this point.”
The largest cryptocurrency fell to $5,705.31 at one point yesterday, and then rebounded to $6,068 at 7:37 am in New York, according to Bloomberg pricing. Bloomberg Galaxy Crypto fell 25%, with Ethereum, XRP, and Litecoin declining as well.
This mayhem has coincided with the drop seen by the oil sector, when Saudi Arabia and Russia went into price war due to the COVID-19 crisis in the wake of declining global demand.
Veteran investor Peter Brandt tweeted on March 12:
“If I interpret the chart without bias, I would say sub $1,000.”
Brandt is famous for correctly forecasting the crash of the 2017 crypto market bull run.
Is it mere opportunism?
Snowden’s positive outlook about Bitcoin may not be just opportunism amid the meltdown of the financial economy.
In his testimony at a hearing about the future of crypto legislation in the US in March 2018, he referred to “digital scarcity” as being the “fundamental innovation” of the cryptocurrency.
In fall 2019, Snowden indicated that he would turn to Bitcoin to avoid the US government’s effort to limit his access to revenues from the publication of his book; Permanent Record.