A billionaire who foretold the 2022 Bitcoin crash says institutional investors are taking the stage as markets approach their spiritual turning point.
Knowing about the Bitcoin crash, Chamath Palihapitiya says institutional investors are buying the soles
Billionaire investor Chamath Palihapitiya has genuinely claimed the beginning of a valuable crash in global markets. Just one year from now, he argues, another milestone is on the way. In a new episode of All-In Podcast, savvy investors with precious capital are returning to the markets as this cycle hits bottom, according to Palihapitiya:
In my experience, when there are sales patterns, it is algorithms that always push the market to one side in the beginning. Then there are hedge funds and more classical fund complexes that include only long-term assets. The final cluster typically consists of individual investors. Additionally, it works in the exact opposite form. Now that individuals are selling, corporate capital is once again finding its footing in this area.
Chamath Palihapitiya also shared how the crypto winter, hardened by bad news one after another, has felt lately. According to him, the initial anger and depression give way to acceptance. When the market rally becomes dominant again, “it really is a different spiritual turning point”. Also, Palihapitiya says the spiritual turning point will depend on the Fed’s rate decisions. He says he expects more hikes in the longer term, so current levels are an opportunity:
I believe the best way to see this is to give the Fed the necessary determination. They will increase the interest rate by another 75 points. If you’re trying to pinpoint when the lowest level was, it’s probably now because rates will likely rise in the middle of Q1 to 4% to 4.50% to 5%. This is why smart money is starting to exit and enter the market.
“A fall is always possible”
Palihapitiya warned that a fall is always possible. However, he sees the relative strength of tech giants like Apple as evidence of a market shift already underway:
People take advantage of it and use it as a buying relationship at every opportunity to argue that negative news is behind many. The fact that we are kind of nearing the end is therefore number one. But secondly, if we see another decline, there is only one cluster of companies that is not significantly affected. Microsoft, Amazon, Apple and Google are participating. Even Facebook has been lumped together with everyone else in these businesses where we’re crushed by 60%, 70%, and 80%.
Morgan Stanley expects 15% rally in Bitcoin price
The crypto market continues to move in correlation with the US stock market. Meanwhile, investors carefully analyze trends in the S&P 500 index to buy Bitcoin positions. Now, Morgan Stanley’s CIO and bear market expert Michael J. Wilson said the US stock market could witness a short-term rally of 16%. However, the rally will only happen when there is no capitulation of interest or official calm. Koindeks.comAs you follow, Bitcoin started the new week above $19,000.