Bitcoin is still ‘firmly in growth mode,’ says crypto investment firm
BlockTower Capital’s Michael Bucella is bullish on crypto, noting that volatility in Bitcoin and Ethereum or other crypto isn’t surprising at all.
As Bitcoin price plummets to lows last seen in July 2021, crypto investor and BlockTower Capital general manager Michael Bucella says retailers should use this as an opportunity to re-enter the market.
The entrepreneur also says that while volatility remains a key issue for some investors, it should not be a surprise to the market given the asset class is still maturing.
Despite a “blowout” in prices that has seen the benchmark crypto fall more than 50% from its all-time high; the investor says Bitcoin’s future outlook is bright.
In a previously recorded interview with CNBC, Bucella noted crypto is likely to see fresh momentum as broader markets look to bounce from the latest sell-off. He says the expectation of higher interest rates from the Fed and other central banks continues to weigh on investor sentiment.
However, with liquidity in crypto available 24/7, the BlockTower Capital executive sees an upside materialising to keep Bitcoin price above a long-term bullish trend. He said the flagship cryptocurrency was “firmly in growth mode” even as it trades alongside the trends in the risky assets market.
On the issue of volatility, Bucella points to Bitcoin and other cryptocurrencies as “a young asset class.” In this case, wild price moves such as witnessed over the years should not be “too surprising.”
He also says the degradation seen over the last several months follows the sharp rise in Bitcoin and Ether in the first half of 2021. He says the price surge that catapulted the coins to fresh was more out of value creation and not fundamental growth.
However, he sees crypto accelerating upwards amid fundamental growth as market structures reestablish themselves.
The analyst also says crypto has held well in the face of the sell-off, compared to some traditional assets in the IPO and SPAC markets that are down as much as 80% over the past few weeks.
The post Bitcoin is still ‘firmly in growth mode,’ says crypto investment firm appeared first on Coin Journal.
