The bearish sentiment in the cryptocurrency market is expected to persist until the end of 2022, according to Fortress Group CEO Marc Lasry in an interview with Bloomberg.
During a June 15 discussion, Lasry mentioned that timing the market bottom is virtually impossible. He noted that no one anticipated Bitcoin (BTC) – currently trading at $21,178.84 – would decline as significantly as it has. The CEO added that cryptocurrency investors are growing increasingly anxious as most digital assets continue posting lower figures each day since the beginning of the week.
Lasry warned:
We're going to see more selling, more pain, and this will continue between now and the end of the year,
With the BTC Fear and Greed Index dropping to 7 – indicating extreme fear – Lasry believes the premier cryptocurrency has yet to reach its lowest point. In light of this, he recommends interested investors to consider buying at the bottom when the opportunity arises.
Following the 2021 bull run, several experts forecasted that BTC would break the $100,000 threshold and potentially climb even higher. For instance, investment bank Goldman Sachs suggested BTC could surpass $100,000 if investors perceived it as a store of value amid rising inflation.
Influenced by numerous optimistic forecasts, Bitcoin supporters continued accumulating more coins at every opportunity, expecting the 2021 bullish momentum to return in full force. However, what began as a minor dip from the November 2021 peak for most cryptocurrencies has evolved into a full-blown bear market.
Among the Bitcoin investors who purchased BTC during its decline include the U.S.-based software company MicroStrategy. The firm acquired 660 BTC between December 2021 and January 31, 2022. MicroStrategy subsequently secured a $205 million BTC-backed loan from Silvergate Capital in March and utilized the funds to purchase an additional 4,167 BTC.
Following this week's crash, the company's stock, MSTR, has suffered a significant hit, dropping 28% in premarket trading on Wednesday.
El Salvador finds itself in a more challenging position after buying the dip multiple times since making BTC legal tender in September last year. The most recent BTC purchase occurred in May when President Nayib Bukele announced the addition of 500 BTC to the country's treasury.
Bukele has faced criticism for leading El Salvador down the BTC path following the turbulence in Bitcoin's market. The country currently holds 2,301 BTC purchased at an average price of $30,744. With BTC falling to $21,178.84, El Salvador has accumulated losses exceeding $22 million.
