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


Some high-profile investors in crypto believe that the crypto market bottom is fast approaching and the time to buy is right – although one still warns of dire consequences if prices fall 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 the cryptocurrency could be nearing a bottom, with Ethereum (ETH) likely $1,000 and bitcoin (BTC) . At about $20,000 to $21,000.

The bottom for crypto will be felt bullishly against US stocks, which could fall as much as 15% to 20%.

“Ethereum should be around $1,000 and it’s $1,200 right now. Bitcoin is around $20,000, $21,000 and it’s $23,000, so you’re pretty close to the bottom in crypto, where you think, 15% to 20% in stocks.” will decline.

Hayes warns of risk of sell-off

Arthur Hayes, co-founder and former head of BitMEX, expressed a similar opinion. Twitter On-chain data for Wrapped Bitcoin (wBTC) and Ether on June 13 indicated that “liquidations have mostly occurred.”

However, Hayes cautioned that should support break above the $20,000 and $1,000 levels for BTC and ETH, respectively, we can expect “heavy selling pressure in the spot market.”

Loading Pal, Scaramucci

Macro investor Raul Pal is taking the recent market drop as an opportunity to add to his crypto position. On June 14, Pal told his 956,000 Twitter followers that “we are in a buying zone” for bitcoin (BTC), adding that he was getting ready to add “significantly” to his crypto posts. Probably starting next week and in July.”

The former Goldman Sachs executive pointed out that an imminent bitcoin bottom could also be signaled by the weekly relative strength index (RSI), which is at 31, near its all-time low of 28.

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

Pal said that his framework often expects a 60% drop over the long-term horizon, adding:

“Indeed, the best way to optimize returns is to add significant numbers when the market tests a major trend.”

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

“We have bought more bitcoin and ethereum as incremental cash flows into our funds” […] So yeah, truth be told, people will look back on this debacle and say I wish I had fresh cash to buy into it. ,

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Novogratz was less gung-ho about investing now, taking a more conservative approach, and telling attendees that it’s not yet time to “deploy a lot of capital” because the economy could collapse further.

“Until I see the Fed, unless I really think, well, the economy is so bad, and the Fed has to stop hiking and even think about cutting, I Don’t think it’s time to really deploy a lot of capital.”

Other metrics that may shed light on whether the crypto is nearing its market bottom is the Fear and Greed Index, which currently sits at 8 under “Extreme Fear,” which was last seen on May 17 on Terra was observed around the time of Luna’s fall.

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