Jesse Powell said that he bought more Bitcoins when the price dropped to $30,000 a few months back.
He says Bitcoin is more a “buy and hold” investment, while his forecast for the US dollar is markedly bearish.
Jesse Powell, Kraken CEO, stated that the current downward pressure will provide investors with another buying opportunity if Bitcoin prices fall below $40,000
In interviewBloomberg TV’s Kraken chief spoke about crypto and revisited his previous prediction of Bitcoin rallying to $100,000 by year end.
While he notes that’s unlikely to happen given the market outlook, he believes the froth seen over the past several weeks would lead to a crucial buy the dip chance if the bears pushed below $40k-ish.
“I was buying when we dipped close to $30k a few months ago and you know I think a lot of people have a lot of dry power on the sidelines just waiting to come in at rock bottom prices,” he told Bloomberg’s Emily Chang.
Bitcoin is a great investment for five years plus
Acknowledging that his previous predictions for Bitcoin might have been a miss, Powell noted that it’s hard to tell what happens next in the market. He however feels it’s better for anyone looking to invest in Bitcoin to look at it as a “five-year plus investment.”
He also talked about Bitcoin’s more volatile nature, noting that such an outlook is more pronounced on shorter time frames- its price can swing massively in a day or over a week. He believes the strategy should be to look at the crypto as a “buy and hold investment.”
Powell believes the dollar will plummet to “zero”.
Powell is still bullish on Bitcoin and crypto in general, but he sees a dire future for the US dollar. He says that with interest rates likely to go negative and the dollar towards “zero”, the best scenario for investors would be not to have their currencies held in the greenback.
Powell also mentioned Kraken’s plans as the crypto market sees more and more activity, noting that the exchange wants to help fight the misinformation likely to impact negatively on new investors. Kraken also plans to launch a platform for non-fungible tokens (NFT), to capitalize on the high interest in the space.
Kraken CEO also mentioned the need for regulation in the sector. While Kraken is pro-regulation, he said that regulations must be clear and should be designed to help the industry grow.
Bitcoin trades at $46,800, as bulls fight to reclaim $50,000 support. The cryptocurrency has declined by about 8% in the past week, though it’s 140% up over the past year. After a severe sell-off in September, Bitcoin recovered to $40,000 and reached an all-time high of $69,000 on November 10.
Mike Novogratz, Galaxy Digital CEO, suggests that the $42,000 level may be a critical support level for Bitcoin.