The crypto market saw somewhat of a blood bath over the weekend, on the back of a 22% Bitcoin plunge. While some recovery is on the way, advisors have been keeping large-cap Bitcoin constant in their portfolios.
In a recent interview, Ted Oakley, founder and Managing Partner of Oxbow Advisors, took a similar position. He said,
“Take whatever position you’re going to take, whether it be 2% or 3%, in the larger either Ethereum or Bitcoin, something along that line, and just own it…”
The two assets are considered relatively “safe” options. However, Oakley was quick to reiterate that these are still volatile assets. With that, it is also worth noting that the industry considers Ethereum and Bitcoin to be “sufficiently decentralized,” hoping it will never get into the regulatory crossfire. Meanwhile, UK Government STA Scott Waygood also recently hovered on the possible outcome of Bitcoin, maintaining a bullish stance. He said,
“My account has risen in value by about 70% during the past 12 months. I’m hopeful that my holding in Bitcoin will lead to my account more than doubling by the end of 2021.”
However, some analysts are seeing the last quarter weakness that Bitcoin witnessed up until now, as a possible sign of a bear market. Others have just associated the steep correction to a large institutional sell-off. Having said that, Lex Moskovski, the CIO of Moskovski Capital, might be expecting another dip before a bounce.
So, here’s the plan.
We bounce. Get sold off. You guys start unpacking that 20k charts. Yes, amidst record liquidity, but surely you’ll get filled.
We dip one more time. CT loses its shit and sell more. But it miraculously gets bought up.
Consolidation, a slow grind up.
🎆!
— Lex Moskovski 🐙 (@mskvsk) December 5, 2021
Therefore, we can say that the king coin’s trajectory might be a little uncertain at the moment. Something Waygood also cautioned the investors about, stating,
“Would I bet my house, or retirement savings, that in the next few months, bitcoin prices would hit a peak in the 4-year cycle? Certainly not.”
But, on the other hand, Bitcoin’s volatility hasn’t stopped Starwood Capital Group chairman Barry Sternlicht from calling it the “great hedge.” In a recent event, he confirmed that around 2-3% of his network is in cryptos. While inflation concerns have so far supported the broader crypto ecosystem, uncertain regulations have done just the opposite.
Regulatory woes
And a major part of crypto market uncertainty remains the lack of a regulatory framework. However, Oakley expects that a framework might be coming soon.
“Investors are naive not to think there’s some sort of regulation coming for [cryptocurrencies]”
After industry players like Coinbase and Ripple, FTX recently released a list of proposals for policymakers. In the past, Binance CEO Changpeng Zhao had also welcomed regulations stating it’ll be good for the growing industry.
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