On April 7, 2022, shredded one million dollar US dollar bills were displayed during the Bitcoin 2022 Conference held at the Miami Beach Convention Center in Miami Beach, Florida.  (Photo: CHANDAN KHANNA/AFP, Getty Images)

Should you buy the Bitcoin crash? Even some crypto bulls say ‘Not yet’.

Bitcoin is struggling this year.

The market’s largest cryptocurrency is down nearly 70% from its November highs. The actions of the Federal Reserve and recession fears have put consistent pressure on financial markets, with cryptocurrencies being among the toughest asset classes this year.

Over the past week – as Bitcoin dropped to $23,000, then $22,000, and then $21,000, Yahoo Finance Live spoke to several investors about buying at these low prices, and none of them said now was the time to buy.

“Unfortunately, I am not a buyer at these levels,” Marc LoPresti, managing director of The Strategic Funds, told Yahoo Finance Live (video above). “In the crypto fund I recommend, we have been 80 percent cash for a while just because of these choppy waters.”

LoPresti said he had heard from some traders who said they would “back up the truck” if Bitcoin dropped to $19,000, but was skeptical: “We’ll see.”

The Valkyrie Bitcoin Strategy ETF, based on Bitcoin futures, has dropped more than 50 percent this year in line with the yields of the base currency. Valkyrie CEO Leah Wald, who also personally holds crypto, said he is not optimistic in the short term.

“It’s historically true that we’ve weathered such storms, but we’re definitely in a bear market right now – it never feels good,” he said. “In a short time frame, I’m very nervous about these markets and I think we’re definitely going to have a lot of pain over the next few months, potentially longer.”

LoPresti, Wald, and others have described the current era as a “cleanup” of the system for crypto.

Anastasia Amoroso, chief investment strategist at iCapital, told Yahoo Finance that the current slump is healthy: “This is a good cleaning process we’re going through, we need to clean the foam, and we need to focus on the applications that are emerging right now. ”

He, like other investors, thinks Bitcoin is still valuable.

“Bitcoin in particular – yes of course it’s under pressure – because it can no longer be interpreted as an inflation hedge,” Amoroso said. “Trading instead is an unprofitable technology. I don’t think that makes Bitcoin obsolete. I think there’s a support price level, maybe and roughly $15,000 in production costs.”

On April 7, 2022, shredded one million dollar US dollar bills were displayed during the Bitcoin 2022 Conference held at the Miami Beach Convention Center in Miami Beach, Florida. (Photo: CHANDAN KHANNA/AFP, Getty Images)

When is this support available? Wald maybe puts it in the fourth quarter.

“If you look at the medium and long term, I always go up Bitcoin,” he said. “So I always think it’s a good bottom and a good buy, depending on your time horizon.”

Mark Palmer, managing director and fintech analyst at BTIG, said it is an important catalyst that will allow Bitcoin and other crypto- and blockchain-related businesses to recover.

“As we start to have a more rational approach to valuation and some enthusiasm about Fed actions begins to calm down,” Palmer said, “it will lay the foundation on which crypto and the entire space will be built. can jump.”

Unfortunately for short-term crypto bulls, the central bank is not signaling a slowdown in rate increases anytime soon.

Julie Hyman Yahoo Finance Live, weekdays 9am-11pm ET. follow him on twitter @juleshymanand you read his other stories.

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