Investment manager, Crypto Fund
Marcos Benvenuto is an investment manager at Crypto Fund, a subsidiary of Crypto Finance. He believes crypto can be a good investment, so long as investors understand the market.
'I'm not going to disagree that price volatility of this emerging asset class is quite high compared to traditional asset classes. Investors cannot perceive this as an investment comparable to equities or bonds. It's more like a VC, startup-style fund,' he said.
'But, at the same time, you maintain investment liquidity, which one doesn't have with a traditional VC investments.'
He also said he expects that the market will stabilise as it matures and welcomes institutional-style investors.
He said: 'Given that this market is mainly retail-driven with a few long-term institutional investors, one observes these points in time where price volatility increases. As more institutional investors enter this market, they're more long-term oriented; investment periods are longer. It is expected that current high price volatility will compress over time.'
According to Benvenuto, investors can expect Bitcoin to recover, though not to hit its all-time high.
'In my personal opinion, we've seen a hype bubble come through in December and January, where we saw the price of Bitcoin reach nearly $20,000 and then come down along this year. Given the evolution of this market, I don't think we are in bubble mode anymore.
'I think now we’ve entered a price stability period. The price ranges traded have tightened significantly. I believe we will see crypto assets bounce back from current yearly lows, and expect prices will start trending up along the year, but at a much lower pace compared to last year’s rally. We might observe Bitcoin hitting the $12-15 thousand range and to stay within that range - in my opinion, I don’t see it going up to $20,000 this year.'