A crypto investing veteran sees no break in the clouds ahead for most asset classes as the markets limp into summer.
In a new interview with CNBC’s Squawk Box, CoinShares chief strategy officer (CSO) Meltem Demirors says her firm remains cautious about further Bitcoin (BTC) investment due to a lack of data on how BTC might perform in a macroeconomic slump.
[adinserter block="1"]“For us at CoinShares, the view is we’re going to stay where we are for a while. There are no near-term upside catalysts.
We have yet to see [how] Bitcoin [behaves] in a recession. Arguably, are we in a recession? We don’t know, but with what’s going on in the Eurozone, around the world, and here in the United States with the Fed hiking rates and cutting back on their open-market activities – we certainly expect more pain ahead for tech stocks, growth, and also crypto.”
"For us at @CoinSharesCo the view is we are going to stay where we are for a while. There are no near term upside catalysts. We have yet to see #bitcoin in a #recession," says @Melt_Dem. "Certainly expect more pain ahead for tech stocks, growth and also #crypto." pic.twitter.com/3dQ7ke9tA5
— Squawk Box (@SquawkCNBC) July 11, 2022
The CoinShares CSO says the crypto markets are still reacting to the fallout after several major projects collapsed in recent months which caused tens of billions of dollars to disappear in a flash.
“I think the big thing question is, what are traders doing [with] what’s happening in markets? We obviously had a lot of liquidations, and a lot of insolvencies that had a massive impact on the market.
We’re talking $10, $20, $30 billion of capital that has basically evaporated overnight. Liquidity that’s gone out of the system, and we haven’t yet seen the full impact of that because most of the companies in this industry are not publicly listed.
So we don’t get that transparency that we normally see.”
Demirrors continues that CoinShares doesn’t see Bitcoin going below a $14,000 threshold, with strong support at $20,000.
Earlier this week, macro strategist Lyn Alden offered similar comments about the crypto forecast.
“There’s still not a lot of bullish catalysts at the moment in terms of the macro landscape, and so I wouldn’t rule out obviously further down movements in the price, but I do think that based on most ways of kind of valuing Bitcoin or looking at Bitcoin’s history, we are in kind of a deep-value zone here.
I don’t think investors should ever rule ever out more downward legs as long as the macro situation is this uncertain.”
At time of writing, Bitcoin is down 3.1% over the last 24 hours, trading for $19,442.
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