What are you doing? Are you exiting? Some of these positions? Are you buying more no im actually averaging down on a couple of the big market cap names? I mean one of the challenges, and this is this is proof now for why we need legislation and policy on crypto, because if we had institutional capital coming in under the market, if they had allocated 50 basis, points or 100 basis points to lets, say ethereum or Bitcoin salon a polygon, whatever you would have had a bid instead because were basically under owned by institutions. We have tremendous volatility and weve seen this before this is not new um itll, you know recover eventually, but this is the nature of crypto. Unregulated cryptocurrencies are in free fall, one of the worlds largest crypto exchanges is cutting nearly a fifth of its workforce and a major crypto lender is halting all withdrawals and transactions for its customers, citing extreme market conditions over the past three months with inflation, spiking and recession Concerns spreading bitcoin has dropped from a high of forty thousand dollars to roughly twenty one thousand dollars. Today. Some top investors think were in for another painful, extended period of low prices. Now crypto industry leaders are bracing for the next to drop after celsius network limited sent. The sector into a tailspin with its announcement that millions of customers would be left in limbo, indefinitely cryptocurrencies are famous for their wild price swings and in their short history, theyve gone through multiple cycles of scorching.

Hot summers followed by frigid long winters. The last downturn began in early 2018 and lasted about two and a half years as investors rushed to exit the digital asset market. The enthusiasm for crypto that catapulted global attention during the covid 19 pandemic is wavering. Many crypto heavyweights are left to grapple with the current downturn wondering how far crypto will fall in which firms will be hit. Well known investor and shark tank star, kevin oleary has reacted to the recent crypto crash in an interview on cnbc, the billionaire investor shared his outlook on the latest crypto crash and what investors should be doing to thrive in this bear market. Before we listen to him. Please dont forget to smash the like button and consider subscribing if you are yet to do so. How should retail investors be thinking about this sell off? Is it an opportunity to buy at a discount, or is it just too risky to make any sort of bet at the moment? No, i mean everybody has challenges with volatility, but i remind everybody: just go back 17 years to a stock called amazon. It also corrected 38 to 50 every year for 12 years in a row as people tried to figure out what this new entity was and so theres always tremendous volatility in new and nascent technologies and new markets and crypto is a new market. I still predict in 12 minutes 10 or 12 years, itll be the 12th sector of the s p, theres, just too much productivity opportunity here, around payment systems and all kinds of other attributes of these blockchain projects that we just dont yet know what the upside is Going to be – and id argue this, if you go to any graduating class, particularly now its very timely, to say this – ask any engineering cohort youre going to find a third of the engineers go into the chain.

They want to work there. They dont want to work in the other 11 sectors of the economy. They want the opportunity to create something new and thats why youve got so much intellectual capital going into this space. You know with certainty down the road that the next genius ideas are going to come from this any college any university, any engineer they all want to work on the chain. Well, on that last point lets talk about crypto, focused businesses for a moment coinbase this morning announcing that theyre cutting 18 of their stuff gemini had a similar announcement, as did crypto.com microstrategy is down 75 year to date, are crypto companies uninvestable? At this point, no, i wouldnt say that theres theres, two categories of crypto companies, ones that use leverage and ones that dont. Now, when you have a very volatile asset and you have the fortitude im going to use that word to use leverage to enhance your returns. You also run the dark side, downside risk of what happens when theres a major correction. As is occurring right now. You can get caught offside, pretty quickly and so celsius thats. A good example of that and i dont want this to sound trite. But let me explain what how bottoms are made in any market. I dont care, if youre in equities or in debt or in crypto or in real estate. You always need a big player to go to zero that always helps whether its long term, capital or whether its one of these crypto infrastructure companies.

I would like to see – and i dont i dont – want this to happen, but it always gives you a good bottom when you get a large player over levered that goes to zero and that always tends to be the beginning of the rebuilding process. So if you have to sacrifice someone who used too much leverage and its always leveraged it, does this somebodys over levered positions are complicated, theyre, not transparent, theyre, not liquid, and they go to zero. Someone is out there on the brink of zero, thats. Okay, in fact, id argue thats a good thing when we get it now, do we get it this week? Do we get it next week, someones going to zero? I dont know who but itll be great for everybody else. That survives because everybody will learn from that and thats. What i like about a washout, an event – and i think, were due for one in in crypto land and i dont know who its going to be, but i guarantee you 100 ive, seen this movie before you will learn later that somebody put on a heavily levered Position they got wiped out and its good its a good thing. So to that point, how are you navigating this crypto winner for the crypto businesses that youre involved in i dont use leverage on crypto, because ive seen volatility like this? In the past, there are certain assets where i might put leverage on, but it wont be in crypto i mean when you see volatility of 50 on an 11 month basis, which were seeing in bitcoin 60 20 days on ethereum.

You cant afford to put leverage on that, but you know people will learn their lessons. This is a good thing in, in the sense that this generation of crypto investors has not gone through. Corrections like this and not gone through them with leverage now theyre going to learn an important lesson. Everybody i know that has survived. Volatility has had a very important lesson or a date with leverage, and they didnt have a great dance. That night. I must tell you just hearing the words bear market can turn even a seasoned investor into a panic. Its understandable risky buying in a time of low market confidence should be enough to dissuade even a seasoned player from entering the financial arena. However, some analysts argue that a bear market might be the perfect time for new investors to get into the game. Spending money can be delightful but losing it. If you are watching big chunks of hard earned savings disappear, losing money can be sheer misery thats. Why the headlines proclaim the arrival of a bear market have been so disturbing when asked on any takeaways for retail investors who are looking to buy the dip to add to their portfolio in any categories of cryptocurrencies what they should be looking at and what they should Be wary of kevin oleary shared what he believes. Retail investors should be buying right now to best militate against risks. Are there any takeaways for retail investors who are looking to buy the dip and add to add to their portfolio any categories of cryptocurrencies? They should be looking at anything that they should be wary of.

I think right now, if youre, you know licking your wounds. Go to the large cap projects, i mean the ethereum bitcoin. Obviously, polygon solana, thereons polygons been slaughtered and its a good project, great opportunity to add to it. I have very big positions in these in these names and ive been nibbling as well theres, nothing wrong. The one thing i would tell everybody is you cant pick the bottom, its impossible? You have no idea when its going to happen, but if youre, if youre staying along the category, you need diversification. I have so many different positions on right now and theyre all over the map now come year end what will happen because this is a year where were going to be looking at tax returns on all crypto trading and income. Therell be a lot of maneuvering on the projects that did not recover to take them as tax losses versus the ones that did now. You said that its hard to call a bottom but lets say we continue to see a sell off. Is there the possibility that the crypto sector uh, you know, dropping in value, could hurt the u.s economy ultimately, or is it just a degree of magnitude so irrelevant that it its not going to make much of a difference? Well, the great news about the crypto economy and even positions like bitcoin ethereum. These are decentralized holdings, its not just the american investor exposed here. Bitcoin is all around the world and its only 880 billion before the correction, which, as you rightly pointed out, is a big.

Nothing burger and so thats. Nothing, i mean you know even all of crypto under 2. Trillion is still nothing in financial services, so theres so much upside to the sector. When we do get policy, when we get institutional investors and sovereign wealth involved, then youll start to see real assets. But you know if bitcoin went down another 20, it wouldnt really matter because its spread around everywhere and and most of the holdings are not institutional. For all the excitement about bitcoin, no institutions own it yet and thats the decision you have to make at a time like this, when youre an investor i mean this is an opportunity to say to myself or anybody. Look if i believe in three years 36 months that this therell be policy on bitcoin. Do i want to own it after policy comes and all the institutions start buying it or do i want to take a chance and live with some volatility now and buy it here at 24, 23 or 20 000, whatever its going to go to, i dont know, But if you believe in bitcoin its a buying opportunity, but you cant guarantee that youre catching the bottom, nobody catches the bottom. It never works that way. Despite the many reasons for apprehension, crypto investors seem to be more optimistic so far than they were during the last downturn of 2018 to 2019.. The industry is in a stronger place now, because there are more cryptocurrency use cases and users.

For example, digital art nft have attracted millions of buyers, decentralized finance applications such as software that lets people earn interest on deposits have grown steadily, although some have also flamed out in a spectacular fashion. What needs to happen for prices to bounce back? The stock market needs to recover some say we would need to see equities turn around before real capital flows back to bitcoin, says joshua, lim a managing director and head of derivatives at crypto, prime brokerage genesis, taran chitra, a digital asset investor and a ceo of crypto Risk modeling, startup gauntlet has a similar view. I expect crypto and growth equities to continue to be correlated for 12 to 18 months. Whatever the case here at savvy finance, we are already in deep red and has no intention of selling anytime soon we will be hodling.