Bitcoin Bear Market Could Make for ‘Great Entry Point:’ Exchange CEO

  • Bitcoin could extend its losses this week amid renewed macro fears and a technical death cross.
  • Hong Fang, CEO of Okcoin, explains why she’s not worried about the token’s short-term volatility.
  • She also lays out the crypto exchange’s NFT plans as the race to launch such marketplaces heats up.

The macro fears over faster rate hikes, higher interest rates, and tightening financial conditions have caught up with the crypto market after they caused a global equity market meltdown on Friday.

As of Monday afternoon, the total crypto


market cap

had retreated to $ 1.81 trillion, with major tokens including bitcoin (BTC) and ethereum (ETH) dropping to as low as $ 38,339 and $ 2,805, respectively, according to CoinMarketCap.

Faced with an impending death cross, the largest cryptocurrency, which has already slid to a six-week low, is expected to suffer further losses. A death cross is formed when a security’s 50-day or short-term moving average falls below its 200-day or longer-term moving average.

The combination of bearish macro sentiment and an ominous technical chart pattern spells trouble ahead for the digital currency, but some say the scarily low price level of bitcoin also presents an attractive opportunity for long-term investors.

“If you are someone who has done their homework and developed a thesis on certain protocols longer-term, periods like this are great entry points just like with other investment opportunities,” Hong Fang, the chief executive of crypto exchange Okcoin, told Insider in an interview.

Fang said she has been able to look past short-term volatilities because the fundamentals of crypto have not changed and the technological capabilities are only getting stronger. In her view, clearer regulation and continued tech improvement will only help push the crypto market forward in the long term.

“Crypto assets are not securities, but think about the stocks of Amazon, Apple, and Tesla,” she said. “If you have done the homework and have a general assessment of where their long-term value is, it’s a great entry point when there are market situations where the stock prices were below that.”

Bitcoin is becoming a ‘stable’ asset in crypto

As investors shun risk assets in a flight to safety, the possibility of further downside in bitcoin is not only reflected in the token’s price but also in retail investors ’dwindling interest.

After search volumes for bitcoin hit an all-time high in May last year, the general public’s interest in the token has steadily fallen, giving away enthusiasm over smaller-cap altcoins and riskier ways of making money in crypto.

The rotation from bitcoin to altcoins has historically corresponded with a risk-on sentiment in crypto. However, as the retail-led market becomes more institutionalized, bitcoin has shed some of its wild


volatility

to trade in a relatively close range over the past few weeks.

This has led some to label it “boring“At a time when the likes of dogecoin (DOGE) are soaring amid the speculation over Elon Musk’s imminent purchase of Twitter.

Fang, an ex-Goldman Sachs investment banker who has seen such cycles play out many times before, interprets bitcoin’s growing “stability” as a sign of its long-term value proposition.

“The long-term price of bitcoin is very much reflective of the scale of consensus that is building around it globally, and that consensus-building comes in waves,” she said. “When you are at the tail end of one wave, the short-term capital is looking for volatility and trading profitability, and bitcoin tends to be a more stable asset within the crypto market.”

NFTs – a starting point for newcomers in crypto

Aside from the shifting dynamics between bitcoin and altcoins, non-fungible tokens are another crypto sector that has seen a change in sentiment recently.

After a slump in trading volumes over the past two months, NFT volumes surged in April, according to data from The Block. The uptick has mostly been fueled by Moonbirds, a collection of 10,000 pixelated owls that claim to also bestow private club membership and additional benefits for long-term holders.

In the past week, seven out of the top 10 NFT sales were purchases of Moonbirds, with metaverse project The Sandbox paying 350 ETH or a little more than $ 1 million for Moonbirds NFT # 2642, according to analytics provider DappRadar.

“NFTs are a good starting point for newcomers to crypto,” Fang said. “The experience of buying a digital asset, then transacting it in an NFT purchase is a useful way to familiarize yourself with the basics of crypto.”

As rival crypto exchanges including Coinbase, FTX.US, and Kraken go through the various stages of rolling out their NFT marketplaces, Okcoin has also pushed out a waitlist to gauge users’ interest in the product, according to Fang.

Slated for later this year, the Okcoin NFT marketplace will feature zero transaction fees for retail investors and set no limit on the royalty rates that creators can set for sales of their work, Fang said at the eMerge Americas conference.

“We will also be gathering information and feedback from customers in terms of what they want and use that to iterate on the product that we have in the pipeline,” she added. “The goal that we are aiming at is to really build the interoperability and build a go-to app for everyone to jumpstart their crypto journey.”

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