Has Bitcoin bottomed out? Raoul Pal and Scaramucci overweight, Novogratz and Hayes diverge

Some well-known cryptocurrency investors believe that the bottom of the cryptocurrency market is rapidly approaching, and it is time to buy - although some still warn of catastrophic consequences if prices fall below established support levels.

On June 13, billionaire Mike Novogratz, founder, chairman and CEO of digital asset commercial bank Galaxy digital Holdings, said at a Morgan Stanley conference that cryptocurrencies may be close to the bottom, and Ethereum may Staying at $1,000, Bitcoin is around $20,000 to $21,000.

Cryptocurrencies will bottom out faster than U.S. stocks, which could drop a further 15%-20%, he said.

"Ethereum should stay around $1,000, it's $1,200. Bitcoin is around $20,000, $21,000, it's $23,000, so crypto is a lot closer to the bottom, and I think stocks will Another 15% to 20% drop."

Hayes warns of risk of sell-off

BitMEX co-founder and former CEO Arthur Hayes took a similar view, acknowledging on Twitter on June 13 that on-chain data for wBTC and ETH indicated that “liquidations have largely occurred.”

However, Hayes warned that if BTC and ETH were to fall below the support levels of $20,000 and $1,000, respectively, we could expect “significant selling pressure in the spot market.”

Pal and Scaramucci add to holdings

Macro investor Raoul Pal is using the recent market downturn as an opportunity to increase his cryptocurrency positions. On June 14, Pal tweeted to his 965,000 followers that Bitcoin was "in the buy zone," adding that he was preparing to "significantly" increase his cryptocurrency position, "probably starting next week." , until July".

The former Goldman Sachs executive explained that signs that Bitcoin is nearing a bottom can also be seen in the weekly relative strength index (RSI), which currently stands at 31, close to an all-time low of 28.

RSI is an indicator used by investors to measure the speed and magnitude of price changes, which can indicate overbought or oversold conditions. According to the description on Investopedia, an RSI reading of 30 or below indicates oversold and undervalued conditions.

Pal said his framework often anticipates a 60% drawdown in the long run, adding:

"In fact, the best way to optimize returns is to add heavily to holdings when the market tests key trends."

In an interview with CNBC's Squawk Box on June 13, Anthony Scaramucci, founder of Skybridge Capital, said investors should "remain disciplined" during the cryptocurrency slump, noting that his fund continues to combine Bitcoin and Bitcoin. Ethereum into its portfolio.

"As more and more cash flowed into our fund, we bought more bitcoin and more ethereum ... so, yeah, honestly, people look back at this crash and say, I wish I had New cash to buy."

Novogratz was less enthusiastic about investing now, taking a more conservative stance and telling attendees that now might not be the time to "deploy a lot of capital" as the economy could be set for a further downturn.

“Until I see the Fed pull back, until I actually think, well, the economy is so bad that the Fed is going to have to stop raising rates and even consider cutting rates, I don’t think this is the time to really deploy a lot of capital.”

Other indicators that could tell if cryptocurrencies are nearing a market bottom are the Fear and Greed Index, which as of today reads 8, which puts it at "Extreme Fear," the last time it was "Extreme Fear" was around the May 17 crash of Terra.