On April 9, Sarah Kunst, the Managing Director at Cleo Capital, shared her insights on Bitcoin and the broader crypto market during an interview on CNBC’s “Worldwide Exchange.”
Kunst began by addressing the significant activity in the cryptocurrency sector, including the upcoming Bitcoin halving and the potential for spot Ethereum (ETH) ETFs. She emphasized the widespread resurgence across various cryptocurrencies, not just Bitcoin, noting even lesser-known coins with limited utility have seen substantial gains. Kunst pointed out the cryptocurrency enthusiasts’ preference for Ethereum over Bitcoin due to its ability to support applications, despite Ethereum’s price resurgence not matching Bitcoin’s. It is worth pointing out that despite being up over 58% so far in 2024, Ethereum is still way below its all-time high of $4,878, which was reached on 10 November 2021.
A notable part of the discussion was the impact of interest rate cuts on Bitcoin. Kunst explained that traditionally, Bitcoin was seen as a non-correlated asset, though this has yet to fully materialize. She argued that lower interest rates make traditional safe havens less attractive, thereby making cryptocurrencies seem like a more appealing investment. As central banks cut rates, indicating economic uncertainty, both retail and institutional investors might turn to Bitcoin and other cryptocurrencies, increasing their prices.
Kunst provided insights into the market dynamics, suggesting that major cryptocurrencies — such as Bitcoin, Ethereum, Solana, and XRP — often see a dip after hitting new highs due to early investors taking profits. This behavior reflects the tremendous gains long-term holders can lock in compared to their initial investments. Despite these fluctuations, Kunst believes the overall trend for cryptocurrencies is upward.
She was also asked about the impact of the upcoming Bitcoin halving (expected around April 20) on its price, where she suggested that it would likely lead to price increases. However, Kunst cautioned that entering the Bitcoin market during a news cycle peak or at all-time highs might not be the best strategy for newcomers.
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