Is the bottom inside?  Raoul Pal, Scaramucci loading, Novogratz and Hayes weighing in

Is the bottom inside? Raoul Pal, Scaramucci loading, Novogratz and Hayes weighing in

Some of the most high-profile investors in crypto believe that the bottom of the crypto market is fast approaching and the timing to buy is right – although one warns of the disastrous consequences if prices drop below established support levels.

Billionaire Mike Novogratz, founder, chairman, and CEO of digital asset merchant bank Galaxy Digital Holdings, said at a Morgan Stanley conference on June 13 that cryptocurrencies could be near the bottom, with Ethereum (ETH) possibly $1,000 and Bitcoin (BTC) likely to be near the bottom. He said he would hold. Between $20,000 and $21,000.

Crypto’s bottom will happen faster than US stocks, which could drop another 15% to 20%.

“Ethereum should hold around $1,000 and is currently $1,200. Bitcoin is $20,000, around $21,000, and $23,000, so you’re much closer to bottom in crypto than stocks will drop another 15% to 20%.”

Hayes warns of selling risk

Arthur Hayes, co-founder and former head of BitMEX, admitted to holding a similar view. excitement On June 13, on-chain data for Wrapped Bitcoin (wBTC) and Ether indicated that “liquidations are mostly occurring”.

However, Hayes warned that if the support levels for BTC and ETH are broken at $20,000 and $1,000 respectively, we can expect “major selling pressure in the spot markets.”

Man, Scaramucci is loading

Macro investor Raoul Pal sees the recent market drop as an opportunity to add to his crypto positions. On June 14, Pal told his 956,000 Twitter followers that we are “in a buy zone” for Bitcoin (BTC), adding that he is preparing to add “significantly” to his crypto positions “probably next week and by July.”

The former Goldman Sachs executive explained that the upcoming Bitcoin bottom could also be marked by the weekly Relative Strength Index (RSI), which is at 31 and close to its lowest ever at 28.

RSI is a metric used by traders to measure the speed and magnitude of price changes that can indicate overbought or oversold conditions. According to Investopedia, an RSI reading of 30 or lower indicates an oversold and undervalued condition.

Noting that his framework often expects a 60% drop on long-term timeframes, Pal added:

“Actually, the best way to optimize returns is to add significantly while the market is testing the main trend.”

Skybridge Capital founder Anthony Scaramucci told CNBC’s Squawk Box on June 13 that investors should “remain disciplined” during the crypto crash, noting that his fund continues to add Bitcoin and Ethereum to its portfolio.

“We bought more Bitcoin and Ethereum with increased cash flow to our fund. […] So yes, to tell the truth, people will look at this fiasco and say they wish I had fresh money to buy it.”

Related: ‘Too early’ to say Bitcoin price has reclaimed key bear market support – Analysis

Novogratz was less enthusiastic about investing at the moment, taking a more conservative approach and telling respondents that it may not be time to “deploy too much capital” yet, as the economy may have to fall further.

“Until we see the Fed run away, I really don’t think it’s time to deploy a lot of capital until we really say, ‘Okay, the economy is so bad and the Fed will have to end the march or even consider a cut.

Other metrics that could shed light on whether crypto is approaching its market floor are the collapse of the Fear and Greed Index (LUNA), which sits at 8 as of today, under “Extreme Fear” last seen at the time of Terra on May 17.

Bitcoin is currently priced at $22,061 and ETH at $1,215.

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