Bitcoin’s bear market could be a ‘great entry point’: Exchange CEO

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

Macro fears of faster rate hikes, higher interest rates and tighter financial conditions caught up with the crypto market after sending the global stock market crashing on Friday.

As of Monday afternoon, the total crypto


market capitalization

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

Faced with a near-death cross, the biggest cryptocurrency, which has already slipped to a six-week low, is set to suffer further losses. A death cross forms 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 a worrying technical chart pattern portends trouble for the digital currency, but some say bitcoin’s frightening price level also presents an attractive opportunity for long-term investors.

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

Fang said she was able to look past short-term volatilities because crypto fundamentals hadn’t changed and tech capabilities were only strengthening. In his view, clearer regulation and continued technological improvement will only drive the crypto market forward in the long run.

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

Bitcoin becomes a “stable” asset in crypto

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

After bitcoin search volumes hit an all-time high in May last year, mainstream interest in the token steadily waned, giving way to enthusiasm for smaller altcoins. capitalization and riskier ways to make money in crypto.

The rotation from bitcoin to altcoins has historically corresponded to a sense of risk in crypto. However, as the retail market becomes more institutionalized, bitcoin has lost some of its wild potential.


volatility

trading in a relatively close range over the past few weeks.

This has led some to label it “boringat a time dogecoin (DOGE) likes are skyrocketing amid speculation over Elon Musk’s impending Twitter buyout.

Fang, a former Goldman Sachs investment banker who has seen such cycles play out on several occasions, interprets bitcoin’s growing “stability” as a sign of its long-term value proposition.

“Bitcoin’s long-term price reflects very well the magnitude of the consensus building around it globally, and that consensus is coming in waves,” she said. “When you’re at the end of a wave, short-term capital is looking for volatility and trading profitability, and bitcoin tends to be a more stable asset in the crypto market.”

NFT – a starting point for newcomers to crypto

Besides the shifting dynamics between bitcoin and altcoins, non-fungible tokens are another area of ​​crypto that has recently seen a shift in sentiment.

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

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

“NFTs are a good starting point for newcomers to crypto,” Fang said. “The experience of buying a digital asset and then trading it in an NFT buy is a useful way to learn the basics of crypto.”

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

Scheduled for later this year, the Okcoin NFT marketplace will have no transaction fees for retail investors and will set no limits on the royalty rates creators can set for the sale of their work, Fang said at the conference. eMerge Americas.

“We’ll also collect customer insights and feedback in terms of what they want and use that to iterate on the product we have in the pipeline,” she added. “Our goal is to really build interoperability and create a must-have app for everyone to start their crypto journey.”



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Bitcoin’s bear market could be a ‘great entry point’: Exchange CEO


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