Grayscale’s CEO, Barry Silbert recently shared his opinion on the cryptocurrency market on Twitter. Silbert revealed that the company is still buying Bitcoin despite the bearish nature of the market. The crypto investor also believes that traders and investors have reached the maximum limit for pain.
Grayscale promotes Bitcoin from an investment perspective, and the company allows crypto exposure to accredited clients. At the moment, numerous clients are exposed to GBTC, Grayscale’s Bitcoin trust. The company’s total exposure on behalf of clients sums up to 639K Bitcoins, with a current dollar valuation of $13.14 billion. Grayscale also has a 3 million ETH exposure, worth $3 billion currently.
Has Bitcoin Bottomed Out?
Bitcoin is currently valued at $19K, which is 72% away from its all-time high of 68.7K in November last year. Barry Silbert believes the leading cryptocurrency has bottomed out, and there should be only one major direction from here.
Technically, the crypto asset is yet to break its current trend and is still heading for the “earth crust.” The current fear and greed index of Bitcoin is at 6%, its lowest value in more than two years. Bitcoin’s Relative Strength Index (RSI) is also oversold at the moment.
While these indicators reveal that Bitcoin is at one of its lowest ranges in a long time, the crypto market is yet to change its direction. Historically, Bitcoin has reversed from its peak by 85% – 90% on several occasions. Such reversals were seen as necessary corrections for a healthy market. Given the possibility of an 85% correction, there is still room for BTC to dip further before going on the next bull run.
Strategic investors apply Dollar-cost-averaging (DCA) in times of uncertainty. This involves buying an asset in fractions at different times, rather than going all in. The time seems right for dollar-cost-averaging to be applied. Until the market structure reveals otherwise, Bitcoin is still in a bearish run.
