Ranked amongst the 50 richest in crypto O.D. Kobo has warned investors to not expect much of a recovery in bitcoin anytime soon. Kobo who serves as the CEO of the digital asset investment firm Annex Capital has always been a big proponent of Bitcoin and Ethereum and its advantages. His former private equity firm PIR Equities was one of the first UK institutional firms to invest in the sector with a $50 million investment in Bitcoin and Ethereum in 2018. However, he has recently shared his thoughts on the current market climate and what investors should be expecting in the coming days, he says “confidence will take a while”.
The recent market crash has seriously impacted investor faith in the cryptocurrency market. As such, sell-offs across digital assets such as bitcoin have been rampant. Sentiment has also suffered greatly during this time and has led to low momentum in the market. This is not changing anytime soon.
Speaking with Bloomberg, the Annex Capital CEO explained that it will take a while for bitcoin to recover to previous levels. He puts it down to the confidence level of investors when it comes to putting money into crypto, which he says will take a while for that confidence to return.
Kobo also speaks to the current economic climate. One thing that has rocked various financial markets has been the hiking of rates by the Fed, the most recent hike happening on Wednesday. He notes that the Fed would have to let up on hiking interest rates at some point and once it does, more money from global macro hedge funds will flow into the market. At this point, Kobo admits that Annex Capital will add more bitcoin and ethereum to its holdings.
The price of bitcoin continues to fluctuate heavily. This shows that while there is mounting resistance at the $20,00 point, there is also good support building up in the low $19,000s.
The short-term prognosis for the digital asset does not look good though. However, there are still some indicators that point to some recovery in the market. One of these is the cycle low before every bitcoin halving.
Usually, the bottom is reached at around 520 days, give or take a few weeks, before the next bitcoin halving. This has been the case for the last two halvings. If the digital asset follows this trend, then the bottom will be reached sometime in the last quarter of the year. Even though this points to some recovery in the short term, it also means that the current lows may not be the end of the decline if the bottom is expected to come in in Q4.