Some high-profile crypto investors believe bottom is near as Bitcoin and Ether prices rebound
Bitcoin and Ethereum prices have already bounced back slightly after falling to their lowest levels on Wednesday.
Thu, 16 Jun 2022, 05:27 am UTC
The recent crypto market sent major digital currencies such as Bitcoin (BTC) and Ether (ETH) tumbling to their lowest levels this week. While there are fears that token prices could go as low as 2017 levels, high-profile crypto investors believe that the bottom is already fast approaching.
Some of the world’s most well-known crypto investors believe that the bottom is fast approaching and now is the right time to buy. However, others also warned that there is a potential risk for such a move if prices fall below support levels
Galaxy Digital Holdings founder and CEO Mike Novogratz, founder believes that the bottom for crypto might arrive faster than that of U.S. stocks. “Ethereum should hold around $1,000 and it’s $1,200 right now,” he said on Monday, Cointelegraph reported. “Bitcoin is around $20,000, $21,000 and it is $23,000, so you are much closer to the bottom in crypto than you are where I think, stocks, are going to have another 15% to 20% decline.”
Meanwhile, former BitMEX CEO Arthur Hayes believes that selling pressure is about to ease up. “Looking at onchain data for $wBTC and $ETH, the liquidations have mostly happened,” he tweeted on Tuesday.
However, he also warned that there could be massive selling could resume if Bitcoin and Ethereum dive below their respective support levels of $20,000 and $1,000. “If these levels break…, we can expect massive sell pressure in the spot markets as dealers hedge themselves,” he added. “We can also expect that there will be some OTC dealers that will be unable to hedge properly and might go belly up.”
Former Goldman Sachs executive and macro investor Raoul Pal believes that now is the right time to buy. “Thus in 18 months, the conditions will be more favorable and macro assets tend to discount 12 to 18 months out,” he tweeted. “But can things get worse? Absolutely. But for my investment framework, we are in the buy zone...right near the 2 standard deviation log regression channel.”
He even revealed that he plans to buy more crypto in the coming weeks ahead. “I am getting ready to add to my crypto positions significantly,” Pal added. “Probably starting next week and into July.”
Indeed, crypto prices have already bounced back after plunging to their lowest levels this year. For instance, Bitcoin (BTC) traded at $22,331.51 at the time of writing after dropping to as low as $20,199.80 on June 15 based on Coinmarketcap data. Similarly, Ethereum (ETH) bounced back to $1,215.36 after it dropped to as low as $1,025.77 on Wednesday.
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