Speaking in a new interview with CNBC’s Squawk Box, CoinShares Chief strategy officer (CSO) Meltem Demirors explained that her firm is cautious about investing more in Bitcoin (BTC) due to the lack of data on how the Bitcoin price might perform in a macroeconomic collapse scenario.
“The view for us at CoinShares has been to stay where we are for a while. We don’t see any upside catalyst in the near term.
bitcoinWe do not know how will behave in a stagnant economic scenario and I have not seen this before. Are we in a recession? Frankly, we don’t know much about this, but we see the events in “technology stocks” as a result of the FED’s interest rate hikes and open market activities in the Eurozone, all over the world and the USA, and we expect much worse. It is possible that the effects of this will be seen in growth rates and crypto assets over time.”
“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 #bitcoins 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 CSO of CoinShares thinks it is still reacting to the collapse of several major projects in the cryptocurrency markets, which caused tens of billions of dollars to disappear in an instant.
“I think the real question is: What are traders doing with what’s going on in the markets? There have obviously been many liquidations and many bankruptcies with a huge impact on the market. We are talking about 10, 20, 30 billion dollars of capital that evaporated overnight. We have yet to see the liquidity coming out of the system and its full impact as most companies in this industry are not publicly traded. So we don’t see the transparency that we normally see.”
Meltem DemirorsHe also noted that CoinShares does not have any expectations of Bitcoin falling below the $14,000 threshold as long as it holds the strong $20,000 support. In addition, he added that the price could reach an all-time high in the next 24 months.
Macro strategist Lyn Alden made similar comments about cryptoassets earlier this week.
“There isn’t a lot of bullish catalysts in terms of the macro landscape right now and so I wouldn’t explicitly rule out further downside moves in price, but looking at the history of this Bitcoin or Bitcoin, we are in some kind of deep value zone here. As long as the macro situation remains uncertain, I think investors should not ignore any further downtrends.”
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Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.