No one wants to wake up on a Saturday morning with a Bitcoin (BTC) crash notification. But that’s exactly what US-based crypto traders had to deal with last weekend. On December 4, Bitcoin dropped as low as $42,000 from over $57,000 the previous day. According to Kevin Kang and Carlos Betancourt, co-founder of $140 million crypto hedge fund BKCoin Capital, macro concerns about the string of liquidations in the crypto market, the new Omicron variant, the Federal Reserve’s tapering, its plan to raise interest rates next year and the return of leverage in the market resulted from a combination. Partners’ views on the crypto market cryptocoin.com compiled for our readers.
Carlos Betancourt: Crypto market still gets a lot of attention
According to Kevin Kang and co-founder Carlos Betancourt, their looks are still on the rise. The biggest reason for their optimism is that the capital flowing into the crypto market over the past year has been quite large. Carlos Betancourt comments:
The markets may look a little weaker in the past week. For example, if we look at November alone, over $4 billion has flowed in cryptocurrencies from many different companies, including Celsius Network, MoonPay, and Gemini.
According to The New York Times, citing data provider PitchBook, crypto and blockchain companies have received over $21 billion in venture capital funding this year, more than the sum of the previous decade. According to The Block Research, the investment move has brought the number of crypto unicorns to over 60 this year. “I think we’re still seeing a lot of interest and I expect that to continue into 2022,” comments Carlos Betancourt.
“BTC will be between $72,000 and $75,000 in the next two to three months”
As risk appetite has returned to the market, Ethereum (ETH) has rebounded stronger against Bitcoin as the ETH/BTC price ratio hit an all-time high of 0.0857. According to Genesis Trading’s market update on Wednesday, the next key levels for the ETH/BTC ratio and Ethereum price are around $0.087 and $4,500 respectively.
Amid the market recovery, Kevin Kang and Carlos Betancourt’s outlook on the crypto market remains bullish despite Saturday’s sudden crash. They expect Bitcoin to hit between $72,000 and $75,000 in the next two to three months, but they see “strain” anywhere above $75,000. They think that the second largest cryptocurrency could exceed $5,000 in the “very near future”.
“December has historically tended to be a pretty bullish bear,” says Kevin Kang. It shows that since 2015, Bitcoin has increased by double-digit percentages in December, excluding the crypto winters of 2018 and 2019. The partners share the following views:
Unless there is a general market crash, we suspect that the uptrend in the crypto market continues.
“The sky is the limit on the metaverse”
Regarding the opportunities in Metaverse and Non Fungible Tokens (NFTs), Kevin Kang and Carlos Betancourt say in an interview that all other major blue-chip cryptocurrencies are bullish on Terra (LUNA), which is up 36% last week despite weak price action.
These days the duo is watching the rise of the metaverse and NFTs. They acknowledge that there is “too much hype” around both trends, reminiscent of the initial cryptocurrency supply frenzy of 2017. But as big companies like Meta, Block (formerly Square), they also see a lot of sustainability behind them. Budweiser (now beer.eth on Twitter) uses them as marketing tools. Here’s what Carlos Betancourt thinks:
The sky is the limit in how companies use the metaverse. It will take some time for companies to understand how they want to go about it and what their needs will be.
To be sure, metaverse tokens Decentraland (MANA), Axie Infinity (AXS) and Sandbox (SAND) fell sharply during recent sales, down 17.5%, 20.7% and 20.5% respectively. Another type of high-risk, high-reward opportunity on the Metaverse is digital real estate that has sold for millions of dollars in the past few weeks. According to Kevin Kang, buying virtual land is like acquiring domains in the early days of the dot-com era:
Seems like a stupid strategy in the short term. But in the long run it worked where big companies paid people tons of money to get their domain names back. So in the short term we’ll see the hype subside, but in the long term I think this will definitely pay off as the world moves towards more digital.
Metaverse land is slowly taking over NFT sales, which were dominated by JPEG or photo NFTs for profile earlier in the year. Carlos Betancourt, who has personally traded NFTs for four years, believes that PFP NFTs not only put power in the hands of artists, but also allow them to continually earn money and royalties from their artworks.
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