Is the bottom in? Raoul Pal, Scaramucci load up, Novogratz and Hayes weigh in

Is the bottom in? Raoul Pal, Scaramucci load up, Novogratz and Hayes weigh in – Mail Bonus

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Some of the most well-known investors in cryptocurrencies believe that the bottom of the cryptocurrency market is fast approaching and the timing is right to buy – although one still warns of dire consequences if prices fall below confirmed levels of support.

Billionaire Mike Novogratz, founder, chairman and CEO of digital asset bank Galaxy Digital Holdings, told a conference in Morgan Stanley on June 13 that cryptocurrencies could be close to bottom, with Ethereum (ETH) likely to hold $ 1,000 and Bitcoin (BTC) at around $ 20,000. $ 21,000.

The bottom line for encryption would be faster than US stocks, which could fall by an additional 15% to 20%, he said.

“Ethereum should hold about $ 1,000 and it is $ 1,200 now. Bitcoin is about $ 20,000, $ 21,000 and it’s $ 23,000, so you’re much closer to the bottom than you are where I think stocks will fall by another 15% to 20%.

Hayes warns of sales danger

Arthur Hayes, founder and former head of BitMEX, took a similar view and acknowledged Twitter June that data on a chain for Wrapped Bitcoin (wBTC) and Ether indicated that “most of the liquidation has taken place.

However, Hayes warned that if support levels for BTC and ETH broke at $ 20,000 and $ 1,000 respectively, we could expect “strong selling pressure in local markets”.

Pal, Scaramucci to upload

Macro investor Raoul Pal recently took a downturn in the market as an opportunity to improve his cryptocurrency position. On June 14, Pal told his 956,000 Twitter followers that “we are in a trading area” for Bitcoin (BTC), adding that he was preparing to “significantly” improve his cryptocurrency position “which will probably start next week and until July.

Former Goldman Sachs CEO explained that the looming Bitcoin bottom could also be indicated by a weekly strength index (RSI), which is at 31, close to its lowest ever, 28.

RSI is a measure used by investors to measure the rate and extent of price changes, which may indicate overbought or volatile conditions. According to Investopedia, an RSI reading of 30 or lower indicates an abandoned and undervalued state.

Pal said his framework often allows for 60% cancellation over the long term, adding:

“In fact, the best way to maximize returns is to add significantly when the market is testing key developments.

Skybridge Capital founder Anthony Scaramucci told CNBC’s Squawk Box on June 13 that investors should be “disciplined” within the cryptocurrency and noted that his fund has continued to add Bitcoin and Ethereum to its portfolio.

“With more money coming into our fund, we have bought more Bitcoin and Ethereum […] So yes, to be honest, people will look back on this mess and say that I wish I had new money to buy into it.

Connected: “Too early” to say Bitcoin prices have regained key bear market support – Analysis

Novogratz was less excited about investing now, taking a more conservative approach and telling attendees that it may not yet be time to “use a lot of capital” as the economy could still fall.

“Until I see the central bank recoil, until I really think it’s okay for the economy to be so bad, and the central bank has to stop rising and even think about cutting, I do not think it’s time. to apply large amounts of capital. . ”

Another measure that could shed light on whether cryptocurrencies are nearing the bottom of the market is Fear and the greed index, which as of today stands at 8, under “Extreme Fear”, which was last seen on May 17, during Terra (LUNA)’s fall.

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