Crypto

Avenue Capital CEO expects crypto sell-off to continue through the end of the year

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Bearish sentiment in the crypto market is expected to continue through the end of 2022, Avenue Capital Group CEO Marc Lasry told Bloomberg.

In a June 15 interview, Lasry said it’s impossible to time a bottom. According to him, no one thought that Bitcoin (BTC), which is currently changing hands at $21,178.84, could trade as low as it has. He added that crypto investors are becoming increasingly nervous as most crypto tokens continue to post lower numbers each day since the start of the week.

Lasry warned:

You are going to have more sales, more pain, and it will continue from here to the end of the year,

With the BTC Greed and Fear Index falling to 7, extreme fear territory, Lasry believes the flagship cryptocurrency has yet to bottom out. To this end, he advocates that interested investors buy the token when they can.

Big investors feeling the pain

After the 2021 bull rally, many experts predicted that BTC would break the $100,000 mark and even trade higher. One example is US investment bank Goldman Sachs, which said that BTC could hit $100,000 if investors viewed it as a store of value amid rising inflation.

With so many bullish predictions, BTC proponents continued to stockpile more coins at every opportunity, anticipating that the 2021 bullish momentum would return in full swing. However, what started out as a slight decline from the November 2021 peak for most cryptocurrencies turned into a full-fledged bear market.

Among the BTC investors who bought BTC on their way down was the US-based software company MicroStrategy. The firm purchased 660 BTC between December 2021 and January 31, 2022. MicroStrategy proceeded to take a $205 million BTC-backed loan from Silvergate Capital in March and used the funds to purchase an additional 4,167 BTC.

Following this week’s crash, shares of the company, MSTR, took a significant hit, losing 28% in premarket trading on Monday.

El Salvador is in a more difficult situation after buying the dip multiple times since making BTC legal tender in September of last year. The last BTC purchase occurred in May when President Nayib Bukele announced the addition of 500 BTC to the country’s coffers.

Bukele has been criticized for leading El Salvador down the BTC path after the BTC market turmoil. The country currently holds 2,301 BTC purchased at a total price of $30,744. With BTC falling to $21,178.84, El Salvador has racked up losses of over $22 million.

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