After about a 10 day slump, Bitcoin is finally trading near or above the critical $20,000 per token level. But it's still under pressure, as are many other coins. What's next for the crypto market, and does it have further to fall? Greg King, CEO of Osprey Funds, joins Closing Bell to discuss crypto pressures, why the current market is a good opportunity, and more. 

Closing Bell

Crypto Recovers After Worst of Slump, But Investors Wonder What's Next

well joining me now is Greg King Ceo of Osprey funds, which focuses on simple and secure crypto based investment products. So Greg, it's good to have you on the show? What is your take on the recent volatility? Do you think that we could fall further from here? Um sadly I do, I think there's a, there's a risk of that still. Um So what you had was a sort of more or less orderly downdraft, albeit not too fun over the last six months and and we think that that was mainly result of the macro factors then you had, what you referenced earlier, the terror sort of collapse and there's been a bunch of dominoes that have kind of fallen as a result of that different funds have liquidated or close to that customer assets being frozen on certain lending platforms, etcetera. And so what you're seeing is some forced selling frankly. Um and that pulled things, you know, we're sort of stabilizing there on 28 to $30,000 level on Bitcoin That pushed things further quite a bit further down to, you know, 20,000 or so where we are now. Um but if you look at the charts, if you, if you're kind of following the news, what's out there, there's still, you know, dominoes that that kind of pop up and so we could see a little more weakness here. I think the silver lining though Would be, I would expect a pretty sharp correction if we do hit, you know, sub 15,000, interesting, well speak to me more about the forced selling. What was going on there, was it margin calls, why do people need to basically bail out of their investments? Yeah, so I mean there's a there's a lot of detail that behind all that, you know, we're not necessarily privy to all of it. But if you if you've been following the news, you have various funds were leveraged. So that's obviously something that, you know, you get margin called on uh you know, I think just the defi space in general has um, you know, not a lot of regulation to it. And so we're we've been finding out who's been swimming without any shorts on kind of butcher the metaphor. But um I think once this is cleared out, I feel like it's very positive for the industry and we do view it as a long term buying opportunity Greg, you did mention that there are some other factors that could take the price of Bitcoin and other cryptocurrencies lower before potential bottom. What are those risk factors out there? Well, I mean, I always have, you have the environment around the regulatory situation and so I think that's been actually constructive. Um so I wouldn't say that's that's too much of a risk factor right now, the tone coming out of Washington I think is positive. Again, back to the macro factors, you really have if you take Bitcoin as a proxy for crypto, we feel that there's countervailing forces pushing on the price. So on the one hand, you have almost runaway inflation, which is obviously not great. And the attendant risk to the overall economy and stock market, which puts people in kind of a risk off mode. Right. And so if you have crypto in your portfolio, that's a risky asset, Let's move some cash, etcetera. And that's selling pressure long term, however, I think if inflation persists, Bitcoin is a great place to store some value and I know there's probably a bunch of listeners that are that are sort of cringing. Um but we believe that long term, you really can't argue with the mechanics of how Bitcoin has been constructed, its finite nature etcetera etcetera. And so it is a long term store of value. It's just volatile in the meantime, partially because on a relative basis to kind of the world's markets, it's still so tiny. All right. All right, Greg, we gotta leave it there. Great to get your take of course instill a volatile market in general for risky assets. That's Greg Kings ceo of Osprey funds