Bitcoin and stocks have plummeted as traders abandon risky investments in the aftermath of the Federal Reserve’s interest rate announcement weeks ago.
During the weekend, Bitcoin broke a critical support level of $20,000 while other cryptocurrencies plummeted as well.
Bitcoin is suffering as on-chain statistics indicate more supply and decreasing demand. Yet, as more miners put currencies onto the market, the majority of additional accounts with brokers has declined dramatically.
Crypto Market Drop, A Positive Outlook
On the other hand, Kevin O’Leary, better known as “Mr. Wonderful” on ABC’s “Shark Tank,” has stated that he is purchasing cryptocurrency at price drops. He is also increasing his Bitcoin ($BTC) and Ethereum ($ETH) positions while discussing how to handle the crypto market’s massive sell-off.
In an interview with Business Insider, O’Leary disclosed that he views the crypto market dip as a positive outlook and will double down on BTC, ETH, and other cryptocurrencies tied to Web 3 projects. However, he also admitted that not all of his assets would be profitable.
The entrepreneur’s portfolio includes 32 cryptocurrency stakes, including Solana ($SOL) and Polygon ($MATIC). In addition, WonderFi, an O’Leary-backed cryptocurrency trading startup, recently became the first to be listed on the Toronto Stock Exchange.
The Bitcoin bear market has reduced his overall portfolio’s cryptocurrency exposure to 16%, dropping from 20% 6 months ago. O’Leary announced in April that he’d already purchased Avalanche ($AVAX) and that his investments “included shares and FTX itself.”
The entrepreneur predicts that Bitcoin’s usage in the United States will take off if there is an increase in regulatory stability. He believes that once that happens, investments in the cryptocurrency market will grow.
He stated that organizations would first invest in BTC before proceeding to other cryptocurrencies and suggested that Bitcoin’s price might soar to $300,000 due to these allocations.
According to O’Leary, Terra’s recent failure is the kind of incident that educates traders to be careful and can assist digital assets to go further since “nobody is going to utilize their concept anymore.” According to him, the crash “taught everyone this wasn’t the method of establishing a stablecoin.”
According to O’Leary, fewer ventures neglect to assist the reinforcing the market, and breakdowns can contribute to forecasting the market bottoms since a “dramatic surrender” will signify the beginning of a comeback.
O’Leary has previously stated that, contrary to popular opinion supporting cryptocurrencies such as Bitcoin, most organizations don’t even own a piece of the coin and will not do so until “their compliance divisions enable for the ESG demands to ‘check a box on these and be able to comply on the asset class on its own.”
Numerous corporations have introduced the king currency to their balance sheets, including MicroStrategy, Tesla, Block, Marathon Digital Holdings, and KPMG Canada. In addition, some institutional investors have acquired BTC risk through Grayscale’s Bitcoin Trust (GBTC).