Some of Australia’s largest digital asset fund managers have dismissed considerations over the grim state of cryptocurrency markets, saying as a substitute that the large plunge in costs means it’s a very good time to purchase.
Henrik Andersson, chief funding officer at $160 million crypto asset fund Apollo, advised The Age and The Sydney Morning Herald his group can be seeking to make investments extra capital in crypto belongings within the days and weeks forward to make the most of the depressed state of the market.
“If you’re a long-term believer in crypto…it might not be a bad time to deploy some capital,” he stated. “That’s what we’ll be doing in the coming days and weeks. We’re focused on the blue chips and high-quality names. Now is the time to invest and rebuild.”
“Obviously, that depends on your risk appetite, but I think everyone knows by now that crypto is very high risk.”
Since final November, the value of 1 bitcoin – the biggest and most well-known cryptocurrency – has fallen by over 50 per cent to be price round $44,000, a slide that has accelerated over the previous month as considerations over rising rates of interest and inflationary pressures have rattled markets all over the place.
Within the crypto market, these wobbles have been compounded by considerations over the viability of so-called stablecoins, that are touted as being pegged to the US greenback and are considered as a secure retailer of worth away from crypto’s volatility. This week, the third-largest stablecoin, TerraUSD, de-pegged from the greenback, inflicting a cascade of promoting motion that noticed the asset fall as little as 30 US cents.
Heath Behncke, founding father of asset supervisor Holon, stated the volatility of stablecoins served as a very good lesson for brand new market entrants over “what’s stable and what’s not”. Like Andersson, his digital asset fund can also be viewing the present slide as a very good time to purchase.
“We are adding to our Web3 position, no doubt about that,” he advised The Age and The Sydney Morning Herald. “There looks like some overreaction to the downside, so I think there’ll be some good opportunities that will be presented there.”