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The cryptocurrencies may have not yet touched the bottom according to Michael Bucella. The partner of the encrypted investment company BlockTower Capital spoke with CNBC Fast Money of virtual currencies and Bitcoin. Bucella said there will be only a few opportunities to buy Bitcoin once the digital assets will be lower.
Are we at the end of the bear market?
The former leader of the Canadian arm of Goldman Sachs said that we are in the last days of a cycle that tends to be very short and unstable. This is why he believes there is a possibility that Bitcoin will reach a new low. However, he explained that reaching, for example, $ 2000 will be something that will not last long.
Overall, he noted that the most successful investors are those who think long-term and are patient. Thinking about the future, he said that several investors are waiting for this last chance to enter the market and buy virtual currencies in bulk.
He then talked about how blockchain and crypto society are working in space. Although there has been a very difficult year for Bitcoin and virtual currencies, companies continue to invest and create value. He said that the smartest money is entering the space through the private side of the market. Most of these portfolios invest in companies that are building the necessary infrastructure for the encrypted market to grow in the future.
The expert then spoke about blockchain technology and virtual currencies. He said it is important to separate blockchain technology from cryptocurrencies.
Bucella explained that it will be important for asset managers to understand how Bitcoin will behave during different macro-cycles. It will be very difficult for a macro portfolio manager to accurately generate a price risk strategy related to this asset class.
Also, he said that since Bitcoin was created there was only one macro cycle. When portfolio managers make a decision about how to diversify their portfolios they take into consideration different activities with a story behind them. As he said, Bitcoin has been on the market since 2008, which is a short period of time in macroeconomic terms to create an investment strategy around it. He also indicated that most of the volume in space comes from retail investors.
At the time of writing, Bitcoin is trading close to $ 4,234 according to CoinMarketCap. It also has a market capitalization of $ 73.68 billion.
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