Crypto Funders See Market Dip as a Buying Opportunity

Some of Australia’s largest digital asset fund managers have brushed aside concerns about the dismal state of cryptocurrency markets, saying instead that the massive price drop means it’s a good time to buy.

Henrik Andersson, chief investment officer of the $160 million Apollo crypto asset fund, said Age Y Sydney’s morning herald his team would look to invest more capital in crypto assets in the coming days and weeks to take advantage of the depressed state of the market.

Henrik Andersson, chief investment officer at Apollo Capital, is optimistic about the future of cryptocurrencies.Credit:joseph robenstone

“If you’ve been a believer in crypto for a long time… it may not be a bad time to deploy some capital,” he said. “That is what we will do in the coming days and weeks. We are focused on high-quality, blue-chip names. Now is the time to invest and rebuild.”

“Obviously that depends on your risk appetite, but I think everyone already knows that cryptocurrencies are very high risk.”

Since last November, the price of one bitcoin, the largest and most well-known cryptocurrency, has fallen more than 50 percent to be worth around $44,000, a drop that has accelerated over the past month due to concerns about rising prices. interest rates and inflationary pressures. have rocked markets everywhere.


Within the cryptocurrency market, these swings have been compounded by concerns about the viability of so-called stablecoins, which are touted as pegged to the US dollar and seen as a safe store of value away from cryptocurrency volatility. This week, the third-largest stablecoin, TerraUSD, decoupled from the dollar, triggering a cascade of selling action that saw the asset drop as much as 30 cents on the dollar.

Heath Behncke, founder of asset manager Holon, said stablecoin volatility served as a good lesson for new market entrants about “what’s stable and what’s not.” Like Andersson, his digital asset fund also sees the current downturn as a good time to buy.

“We are expanding our position in Web3, there is no doubt about that,” he said. Age Y The Sydney Morning Herald. “It looks like an overreaction to the downside, so I think there are going to be some good opportunities that will present themselves there.”

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