Kathleen Breitman, the co-founder of the Tezos blockchain, has expressed her views on Bitcoin’s status as a store of value amid the latest crypto crash. In an interview with CNBC’s ‘Squawk Box’ on August 5, Breitman commented on the market reaction as Bitcoin plunged to under $50,000.

According to Breitman, Bitcoin’s price drop was a reaction to broader market jitters. Factors contributing to this sentiment shift include fears of a potential global recession, with the crash in Japan’s stocks exacerbating the situation across the market.

Tezos Co-founder Comments on Bitcoin Sell-off

Analysts also attributed the market’s tumble on August 5 to geopolitical tensions and the Federal Reserve’s recent interest rate decision. In the crypto market, rumors of massive selling by Jump Trading added new downside pressure.

“Basically, what we are seeing is something similar to what happened at the beginning of COVID, where folks get a sense of something that looks like a recession and the first thing they decide to sell is their internet pretend money,”

Breitman said Bitcoin is often the first asset to be sold during market turmoil, referring to it as “internet pretend money.”

Bitcoin’s Store of Value Narrative

Breitman added that Bitcoin is getting “a bit of a shellacking” as it remains a largely speculative currency. She noted that most holders still don’t see it as anything more than an experiment. As for Bitcoin being a store of value, Breitman said she’s yet to buy into that narrative, which she added was a meme currently “being decimated.”

Despite this view, Breitman acknowledged that Bitcoin is a core asset in the market and will grow as it becomes more mainstream. She emphasized that Bitcoin has core utility and does not need to be a store of value asset to be useful.

Bitcoin Price Performance

While the digital gold has rebounded slightly to above $50,000, its value remains 17% down in the past 24 hours and more than 28% in the red over the past week. Elsewhere, it’s a sea of red for crypto as 24-hour liquidations rose to over $1 billion.

Notably, Bitcoin and stocks’ declines contrasted with the performance of gold, which largely held its value as the market faced turmoil.

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