Bitcoin dropping below $40,000 has shaken the Bitcoin market, as some market players express worry over the dip. However, the CEO of Kraken insists that the price dip is a great buying opportunity.
Co-founder and CEO of Kraken, Jesse Powell, while conceding that it is hard to predict where prices in the cryptocurrency market are headed, said that a Bitcoin price of $40,000 and below would be a good opportunity to buy.
Powell made the price call to Bloomberg TV while fielding a question about whether he agreed with the CEO of Galaxy Digital Mike Novogratz. Novogratz recently told Bloomberg that he sees Bitcoin bottoming out at $42,000 or a bit lower due to the year-end selloff, but expects it to gain momentum as the market in the medium term.
Powell concurred with this analysis stating market participants were poised to go all in on Bitcoin should the price reach that range. He notes that buying activity at the price range would be comparable to a few months ago when he was part of market participants who bought Bitcoin when it dropped to around $30,000.
“I think a lot of people have some dry powder on the sidelines just waiting to come back in at rock bottom prices,” he said.
Market players remain unfazed by Bitcoin’s intense volatility
Powell’s sentiment of the market is coming at a time when the price of Bitcoin has plunged significantly. The Cryptocurrency market has been reacting to the ongoing recovery of the value of the dollar according to some analysts.
This week has seen the U.S Dollar Index, which measures the value of the global de facto reserve currency on the international market, gain 0.12 percent to 96.190 points. The recovery, combined with the Federal Reserve’s being headed in the direction of reducing inflation, has made investors tread with caution when dealing with risk investments like Bitcoin.
As a result, in the past 14 days the price of Bitcoin has fallen by around 15.3%, even reaching a low of $45,515. However, at press time, the price seems to be staging a comeback as it is up 2.87% and is currently trading at around $48,340.
Powell’s sentiment seems to be shared by many key market players as their activities have shown. Institutional investors such as Michael Saylor’s MicroStrategy have been capitulating on the downward price correction to buy more Bitcoins. Just last week, the enterprise software company expanded its Bitcoin exposure by adding 1,434 bitcoins for ~$82.4 million in cash, bringing the total holdings to 122,478 coins.
Similarly, Justin Sun and the country of El Salvador have also added to their holdings amidst the drop from all-time high.