Billionaire venture capitalist Chamath Palihapitiya shared his expectations for the cryptocurrency market in a podcast. He predicts a major shift in financial markets after this year’s crash. Here are the details…
Billionaire reveals his expectations for the traditional market and cryptocurrency market
In a new All-In podcast, the CEO of Social Capital says he’s changing his stance on the financial markets. He states that this change came after he accurately predicted this year’s crash. In November 2021, Palihapitiya warned investors after big names like Elon Musk and Jeff Bezos started selling shares of their companies. This time, the billionaire says the markets have bottomed out and are consolidating. Palihapitiya used the following expressions:
This is the time to start thinking and prepare to really ‘break’ the money. I think there are enough signals every day to tell me it’s time for at least margin trades. Because I think markets do a pretty good job of digesting things. Then they price forward. All we know is today’s prices. So the real prediction is what will happen in the future. For my part, I’m actually starting to be a little constructive at this point.
Palihapitiya awaits FED’s intervention
The billionaire investor also says he is convinced the Federal Reserve will intervene to stop the bleeding. According to Palihapitiya, market participants know that in the last ten years, the Fed will step in no matter what. “If things got too rough, if there was uncertainty in the market, the FED would constantly step in to create a buyer as a last resort,” Palihapitiya said. Thus, the bank would eliminate the last part of the real “supply-demand” balance.
Palihapitiya said he wanted to “take all the risk” and say that the markets are “pretty close” to real bottoms. In general, he conveyed that we are closer to lows than to highs. “Investments made during this period will probably yield the most asymmetrical returns”. Therefore, according to the expert, “it will work well for a long time”. “This was true in 2008, 2009 and 2010,” Palihapitiya said. It was true in 2022, 2003 and 2004,” he concludes.
What is the latest situation in the markets?
Meanwhile, crypto markets are trading sideways. Last week, BTC marked a 12-day high before dropping sharply to $18,600. However, it gained mild momentum after the decline and calmed down around $19,000. The weekend was particularly quiet as Bitcoin hovered around $19,000. Monday started on a similar note. BTC is trading several hundred dollars above the $19,000 line. The overall cryptocurrency market value has also increased by 0.9 percent in the last 24 hours. Right now, it’s around $964 billion.