Some high-profile investors have taken the recent market downturn as an opportunity to increase their holdings in crypto, though others warn that the worst is yet to come.

Some of the most well-known crypto investors believe that the bottom of the cryptocurrency market is fast approaching and it is time to buy, although they still warn of disastrous consequences if prices fall below established support levels.

Billionaire Mike Novogratz, founder, chairman and CEO of digital asset trading bank Galaxy Digital Holdings, said Monday at the Morgan Stanley conference that cryptocurrencies could be close to bottoming: Ether (ETH) is likely to be worth $1,000 and Bitcoin (BTC) will remain at $1,000. from 20,000 to 21,000 dollars.

The cryptocurrency will bottom faster than US stocks, which could fall another 15-20%, he said:

“Ethereum should be worth around $1,000, and now it’s worth $1,200. Bitcoin is worth around $20,000, $21,000, and $23,000, so you’re a lot closer to the cryptocurrency bottom than where I think stocks will drop another 15% to 20%.”
Hayes warns of sell-off risks
Arthur Hayes, co-founder and former head of BitMEX, took a similar view, acknowledging on Twitter on Monday that network data for packaged bitcoin (wBTC) and ether indicated that “the liquidation has largely taken place.”

However, Hayes warned that if BTC and ETH break through support levels at $20,000 and $1,000 respectively, we could expect “massive selling pressure in the spot markets.”

Man, Scaramucci is charging
Macro investor Raul Pal is using the recent market downturn as an opportunity to increase his exposure to crypto. On Tuesday, Pal told his 956,000 Twitter followers that “we are in a buy zone” for bitcoin, adding that he is ready to “significantly” increase his holdings in the cryptocurrency, “probably starting next week and through July.” increase.

The former Goldman Sachs manager explained that Bitcoin’s approaching bottom could also be signaled by the weekly Relative Strength Index (RSI), which stands at 31 and is approaching its lowest level at 28.

RSI is a metric used by investors to measure the speed and magnitude of price changes, which may indicate an overbought or oversold condition. According to Investopedia, an RSI reading of 30 or below indicates an oversold and undervalued condition.

Pal said his structure regularly assumes 60% drawdowns over the long term, adding:

“In fact, the best way to optimize returns is to increase them significantly when the market tests a key trend.”
Skybridge Capital founder Anthony Scaramucci told CNBC’s Squawk Box on Monday that investors should “remain disciplined” amid the cryptocurrency downturn, noting that his fund continues to add bitcoin and ether to its portfolio.

“As more money is coming into our fund, we are buying more bitcoin and ethereum […] So yes, to be honest, people will look back at this fiasco and say I wish I had fresh money to invest me. it’s shopping.”

Related: ‘Too Early’ To Say Bitcoin Price Recovered Key Bear Market Support – Analysis

At that point, Novogratz was less interested in investing, taking a more conservative approach and telling attendees that it might not be the time to “invest a lot of capital” as the economy might have to fall further.

“Until I see the Fed flinch, until I really think, well, the economy is so bad that the Fed will have to stop growing and even think about cuts, I don’t think it’s time, really a lot of capital. “.

Other metrics that may shed some light on whether the cryptocurrency is nearing its market bottom include the Fear and Greed Index, which is currently at eight on June 15th, down from the extreme fear that was last seen around the same time on June 17th. May and became the collapse of Terra.

Bitcoin is currently worth $22,061 and ETH is $1,215 at the time of writing.

Source: CoinTelegraph

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