BTC diving to $40K would be a buy opportunity

Jesse Powell says he bought more Bitcoin when it dropped to lows of $30,000 a few months ago.

He says Bitcoin is more a “buy and hold” investment, while his forecast for the US dollar is markedly bearish.

Kraken CEO Jesse Powell has said the current downward pressure would provide another buying opportunity for investors if the price of Bitcoin were to dip below the $40,000 level.

In an interview on Bloomberg TV, the Kraken chief talked about the crypto space and even revisited his earlier prediction that had BTC rallying to $100,000 by the end of the year. 

While he notes that’s unlikely to happen given the market outlook, he believes the froth seen over the past several weeks would lead to a crucial buy the dip chance if the bears pushed below $40k-ish.

“I was buying when we dipped close to $30k a few months ago and you know I think a lot of people have a lot of dry power on the sidelines just waiting to come in at rock bottom prices,” he told Bloomberg’s Emily Chang.

Bitcoin is a “five-year plus” investment

Acknowledging that his previous predictions for Bitcoin might have been a miss, Powell noted that it’s hard to tell what happens next in the market. He however feels it’s better for anyone looking to invest in Bitcoin to look at it as a “five-year plus investment.”

He also talked about Bitcoin’s more volatile nature, noting that such an outlook is more pronounced on shorter time frames- its price can swing massively in a day or over a week. He believes the strategy should be to look at the crypto as a “buy and hold investment.”

Powell sees the dollar crashing to “zero”

But while he remains bullish on crypto, especially Bitcoin, Powell paints a grim picture for the US dollar. He says that with interest rates likely to go negative and the dollar towards “zero”, the best scenario for investors would be not to have their currencies held in the greenback.

Powell also mentioned Kraken’s plans as the crypto market sees more and more activity, noting that the exchange wants to help fight the misinformation likely to impact negatively on new investors. Kraken is also looking to unveil a non-fungible token (NFT) platform to seize on the opportunity provided by the great interest in the space.

The Kraken CEO also commented on the need for proper regulation in the sector, noting that the exchange is pro-regulation but these should be clear and designed to support the industry grow.

Bitcoin currently trades around $46,800 as bulls battle to reclaim the $50,000 support level. The cryptocurrency has declined by about 8% in the past week, though it’s 140% up over the past year. In September, Bitcoin bounced off the $40,000 level after a brutal sell-off, and despite a choppy October, reached an all-time high above $69,000 on 10 November.

This time, Galaxy Digital CEO Mike Novogratz says the $42,000 level might be a key support level for Bitcoin.