Carl Icahn’s $1.5 Billion Crypto Investment Backs Buy the Dip Strategy

B.Millionaire investor Carl Icahn discussed plans to enter the crypto markets on a large scale this week. The previous one Cryptoskeptic said Bloomberg He is considering investing around $ 1.5 billion in cryptocurrency. The world’s fifth richest hedge fund manager also stated that “much of the cryptocurrency issued today will not survive.”

“I’m looking at the whole business and how I can get relatively deeply involved with Icahn Enterprises because I think it’s here to stay in one form or another,” he said in an interview on Tuesday.

85-year-old Icahn believes that cryptocurrencies have the potential to protect investor funds from devaluation due to aggressive quantitative easing measures. The legendary Wall Street investor’s engagement would further boost institutional and retail investor confidence in crypto markets. Before Icahn, Mark Cuban, Ray Dalio, Michael Saylor, and Howard Marks also changed their negative views on emerging technology.

Icahn’s crypto backing is a big win for bulls

Bitcoin (BTC) has lost hundreds of billions of dollars in market capitalization in the past few weeks after Elon Musk raised questions about the fossil fuel use in Bitcoin mining and suspended Tesla (TSLA) Product purchases with BTC.

Investors who bought Bitcoin in the rally earlier in the year saw losses due to a surprising drop in prices. Still, increasing investments from the world’s best-known investors will help calm the bearish sentiment. Icahn, who has a net worth of $ 16.7 billion, said his company has not bought cryptocurrency and is still looking for ways to invest in crypto markets.

“A big way for us would be a billion dollars, a billion and a half dollars, something like that. That would be a great way for us I think. But sometimes we get bigger, sometimes a lot smaller. I will not say exactly. “

He has bought rundown stocks in the past and helped rebuild the company to generate market returns. He doesn’t seem concerned about the recent collapse in crypto prices and tightening of controls. In fact, his stance on the $ 1.5 billion investment suggests the legendary investor sees the decline as a buying opportunity. Prior to Icahn, Quant Hedge Fund Bridgewater Associates founder Ray Dalio and Nobel Prize winner Robert Shiller announced their intention to invest in Bitcoin.

Is the Bitcoin Dip really an attractive entry point?

Bitcoin price struggles to break the $ 40,000 range after collapsing from an all-time high of around $ 63,000 last month. However, the price rebounded from last week’s lows of $ 31,000, largely thanks to a stronger institutional adoption rate.

Crypto markets can be very speculative in nature. The recent drop in prices is due to short-term problems related to mining processes and tough crackdown on Chinese regulators. In addition, greater crypto acceptance and growing acceptance as a store of value will strengthen the future foundations. The volatility of the crypto market is evident as the digital currency has not yet fully matured and has to cross various regulatory thresholds. Institutional investors’ strategy of buying Bitcoin and other cryptos on the go strengthens their bullish outlook.

The views and opinions expressed are those of the author and do not necessarily reflect those of Nasdaq, Inc.

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