Shark Tank star Kevin O’Leary, aka Mr. Wonderful, says he bought the dip during the recent crypto market sell-off. He also said, “Right now, crypto itself desperately needs policy. It needs regulation.”
Kevin O’Leary shared his crypto market outlook and investment strategy during this bear market in an interview with Stansberry Research published Thursday.
“I see Bitcoin sort of testing $20,000 constantly, with a lot of resistance,” he added,when asked about the state of cryptocurrencies, “BTCseems to be holding between $20K and $23K.” He opined that “it is still very profitable for bitcoin miners who are currently mining at around $7,000 per coin.
“There has been a knee-jerk reaction against bitcoin miners recently because of ESG (environmental, social, and corporate governance) concerns, but they are also self-correcting by getting into nuclear and hydroelectric power, which you know is abundant in some countries like Norway.” O’Leary explained.
The Shark Tank star continued.
Now, crypto itself desperately needs policy. It needs to be regulated.
O’Leary explained.” Just two weeks ago, a bill was contemplated to be pushed through regarding stablecoin as a payment system, not bitcoin. And as you know, that was a very volatile area.”
Noting that this bill was “stalled in September,” he emphasized that ” I think there is a 50-50 chance that we will have a policy on stablecoin that is basically tied to the U.S. dollar.”
Mr. Wonderful elaborated.
Let’s be specific about why we think this will happen. Crypto, NFTs, tokens – there is a turf war going on between the SEC and all the other regulators on all of these.
“Wise regulators, policymakers are saying: ‘Wait a minute, let’s take one consequence. Let’s just have payment systems like credit cards, Visa cards, or money market funds that have very limited flexibility in what they can hold.” Basically T-bills and cash in dollars – same thing with payment systems like stablecoin,” the Shark Tank star noted, adding.
If that policy comes down, let’s say it’s implemented in September. That is a signal to the market that we are starting to break through the policymaking logjam, and I am very, very optimistic.
O’Leary was also asked about his own crypto investments and what strategies he has used during this bear market.
“We took a hit. We were at 20%, it grew to 23%, then down to 16% of the portfolio,” he shared. ‘But I’ve always said that this kind of volatility occurs in the unregulated asset industry because there are no institutional bids, so maybe at the lowest point we were at 15%, we lost 40% of our value, and now we’re picking up on some of our projects. Not all of them have come back at the same pace.
Calling Bitcoin, Ethereum, Solana, and Polygon “big players, big market cap names,” O’Leary clarified.
In some cases, we have doubled down. We took advantage of extreme volatility and big market cap names likeETHand Bitcoin, ETH and Bitcoin. If you want to stay long, why not add to your position?
Wonderful noted that the crypto asset class “doesn’t correlate with anything like people thought” including inflation.
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