Shark Tank star Kevin O’Leary, aka Mr. Wonderful, says he has bought the dip during the recent cryptocurrency market sell-off. He added: “Now crypto itself desperately needs policy. It needs regulation.”
Kevin O’Leary Buys Dip, Comments on Bitcoin Price
Kevin O’Leary shares his crypto market approach and investment strategy during this bear market in an interview with Stansberry Research published on Thursday.
“I see bitcoin sort of testing $20,000 all the time, getting a lot of resistance,” he said when asked about the state of the cryptocurrency, adding that BTC seems to be holding between $20K and $23K. “Still very profitable for bitcoin miners that are currently mining at about $7,000 per coin at scale,” he opined.
“ESG has caused knee-jerk reaction against bitcoin miners recently” [environmental, social, and corporate governance] There are concerns, but they are also self-improving by getting into nuclear and hydropower, which you know is plentiful in some countries like Norway,” O’Leary explained.
The Shark Tank star continued:
Now crypto itself desperately needs policy. It needs regulation.
O’Leary explained: “Only two weeks ago there was a bill that looked to push through stablecoins only as a payment system, not on bitcoin. And as you know it’s been a very volatile area. Is.”
Noting that the bill “has been stalled for September,” he stressed: “I think there’s a 50-50 chance that we will have policy on basically stablecoins tied to the U.S. dollar.”
Mr wonderful detailed:
Let me explain specifically why I think this is going to happen. There is a turf war going on between the SEC and every other regulator with regards to crypto, NFTs, tokens – all these things.
“The smart regulators, the policymakers are saying: ‘Wait a second, let’s take one outcome. Let’s just do payment systems, just like a credit card, a visa card, or a money market fund, which has very limited flexibility in terms of what you can hold it.’ Basically, T-bills and dollar-for-dollar cash — same thing with a payment system like a stablecoin,” the Shark Tank star noted, adding:
If that policy comes down. Let’s say it gets done in September. This is a signal to the market that we are starting to break the impasse on policy-making, and I am very optimistic.
O’Leary was also asked about his own crypto investments and what strategy he has been using during this bear market.
“We took a hit. We were at 20% and then it went up to 23%, then it fell to 16% of the portfolio,” he shared. “It was really volatile, but I’ve always said you were a We’re going to get this volatility in an asset industry that’s not regulated because there’s no institutional bidding, so maybe we’re at at least 15%. We have lost 40% of the value and now we are back [in] some projects. They haven’t all come back at the same speed.”
Naming bitcoin, ethereum, solana, and polygon, which he called “the big players, the big market cap names,” O’Leary revealed:
In some cases, we doubled. We took advantage of extreme volatility and large-cap names like ETH and Bitcoin. If you’re going to be there for a long time why not add to the situation.
Mr. Wonderful noted that the crypto asset class “is not correlated with anything as people thought,” including inflation.
