Bitcoin May Have To Dip To $ 25,000 Before Big Players Buy Down: Amber Group

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Bitcoin has plummeted since April. Cesc Maymo / Getty Images Bitcoin may need to drop to $ 25,000 before investors really start buying the decline, the CEO of Amber Group said. Michael Wu said institutions are still interested in crypto, but are wondering where the bottom is. Bitcoin has fallen dramatically from its April high, in part thanks to the Chinese crackdown. Sign up for our daily newsletter, 10 things before the opening bell here.

Bitcoin may need to fall to $ 25,000 before major investors resume buying bitcoin in large amounts, said the managing director of $ 1 billion crypto lender Amber Group.

Michael Wu told Insider in an interview this week that he believes bitcoin needs to fall further before institutions like hedge funds are drawn to the asset again. He said he thought that level was probably somewhere between $ 25,000 and $ 30,000.

Bitcoin fell 5.5% on Thursday to $ 32,640. It was well below the April record of nearly $ 65,000.

“If we really have a flush of up to, say, $ 25,000, or even briefly below, I think there’s a huge point in buying really cheaply at those levels for a long entry. term, ”Wu said.

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Bitcoin has fallen since April, with sales driven by Elon Musk’s U-turn on accepting the token as a form of payment for Tesla cars and a crackdown on crypto mining and transactions in China.

The meteoric rally in the first few months of the year was largely driven by interest from large institutions like hedge funds and banks, analysts said.

According to JPMorgan crypto expert Nikolaos Panigirtzoglou, institutional interest has all but dried up in recent months. He told Insider in June: “There is no evidence here of a downside buying mentality.”

Wu, whose Amber Group recently gained backing from large hedge funds and a $ 1 billion valuation, said institutions are not rushing into the crypto space “like they were doing last year or so. beginning of this year “.

But he said he still had many conversations with interested institutional investors.

“I think most of them are still very confident and optimistic about the long term outlook for crypto assets. But in the short term, they are not sure. [if we are] down or near the bottom, ”he said.

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