Some of the highest-profile investors in crypto believe that a crypto market bottom is fast approaching and the timing is right to buy — although one still warns of catastrophic outcomes should prices fall below established support levels.
Billionaire Mike Novogratz, the founder, chairman and CEO of digital asset merchant bank Galaxy Digital Holdings told a Morgan Stanley conference on June 13 that cryptocurrencies may be close to a bottom, with Ethereum (ETH) likely to hold at $1,000 and Bitcoin (BTC) at around $20,000 to $21,000.
The bottom for crypto would be realized faster than that of U.S. stocks, which could fall a further 15% to 20% he said.
“Ethereum should hold around $1,000 and it’s $1,200 right now. Bitcoin is around $20,000, $21,000 and it is $23,000, so you are much closer to the bottom in crypto than you are where I think, stocks, are going to have another 15% to 20% decline.”
Hayes warns of sell-off risk
Arthur Hayes, co-founder and former chief of BitMEX took a similar view, acknowledging on Twitter on June 13 that on-chain data for Wrapped Bitcoin (wBTC) and Ether indicated that “liquidations have mostly happened.”
However, Hayes warned that should support levels break for BTC and ETH at $20,000 and $1,000 respectively, we could expect “massive sell pressure in spot markets.”