In recent months, the Bitcoin and altcoin market has been down. Many investors are wondering when the nascent field will remove its negative trends. At the macro level, markets are reacting to inflation concerns over the Fed’s hawkish monetary policy, leaving investors with a risk-averse appetite for speculative assets. Meanwhile, the trillion-dollar industry struggles to recover from the collapse of UST and Terra while assessing systemic risks.
Osprey Funds manager shared his comments about Bitcoin
As we have reported as Kriptokoin.com, Bitcoin has lost nine consecutive weeks until May. This marked the longest streak in its 13-year history. The token broke its record low on Sunday, posting small gains. Bitcoin is still down more than 55 percent from its all-time high and is trading around $30,488 on Wednesday, according to crypto data platform Messari. But Greg King, founder and CEO of $130 million crypto asset manager Osprey Funds, says Bitcoin may have hit roughly $26,000 last month.
King, “The challenge with what’s going on in the macro environment is that there are certain forces that push everyone into a risk-free position. “His first instincts are that crypto is risky.” Known at Barclays for helping create the industry’s first exchange-traded notes, King launched Osprey Funds in 2018. The asset manager offers six trusts to give investors exposure to crypto assets including Bitcoin, Solana, Polkadot, BNB Chain, Polygon and Algorand.
King said that although altcoins have their own local factors that influence price action, altcoins trade similarly to riskier assets like technology stocks. Solana, for example, has experienced several outages in its network that has caused a recent decline. King predicts that the correlation between altcoins and technology will continue on a “medium to long-term basis.” “These are software companies and projects that are organized differently,” King said, referring to both Solana and Avalanche.
likens Bitcoin to digital gold
Bitcoin’s network is often seen as a cryptocurrency that allows users to make unlimited and decentralized transactions. Proponents like King are touting crypto as a hedge against inflation similar to digital gold. Osprey Funds has a three-year outlook on Bitcoin and other major layer-1 blockchains. According to the asset manager, an Osprey research report in April, Bitcoin’s price target by 2025 will be $230,487 in the bullish market. On a downtrend, it will find $106,111.
Cryptocurrency advice against inflation from King
King said, “People also wonder what I can do to avoid inflation. If Bitcoin is digital gold, it suddenly becomes one of the most important competitors out there.” King said individual investors can navigate bearish markets in three ways. First, investors should make sure they invest a dollar amount they feel comfortable with in their overall portfolio. Younger people may dedicate more and take greater risks than someone approaching retirement age. King advises investors to dedicate 2-20 percent of their portfolio to crypto.
King said, “Everyone hates reading stories about a person who invests their life savings in a certain token and everything melts away.” Luna’s collapse, for example, resulted in the complete deletion of savings accounts for some investors. Some of these funds were devoted to the future education of the investors’ children, home purchases, and the retirement of their parents. Second, individual investors look at the dollar-cost average, which means systematically investing a dollar amount on a regular basis, regardless of price.
King said this is a “tried and true investment method” where you can save more at lower levels and less at higher levels. Finally, King recommends taking a long-term view on investments and investing in top-tier-1 blockchains, which will be the “backbone of Web3.” “Investors should be prepared for significant pullbacks because you can’t see an asset class rising hundreds of percentage points in some years without a 50 percent to 80 percent drop in some years,” King said.
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