Benzinga - Diogo Monica, co-founder of Anchorage Digital, went on CNBC to discuss Bitcoin and his views going forward. The entrepreneur has years of experience in both computer science and blockchain. He has a Ph.D. in network security and created his institutional crypto brokerage company in 2017.
To start the interview, Monica was asked about the increased volatility of Bitcoin compared to other assets, with host Joe Kernen remarking, "If you don’t have a firm conviction there are times it just shakes anyone who’s holding … to the core." Kernen pointed out the past price movements, as Bitcoin went up and down to extreme numbers between past bull and bear markets.
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"If you told me a year ago that we were going to have a correction down to $63,000 I would have been ecstatic," Monica said, noting that Bitcoin has vastly exceeded most investors' expectations and recentering the current price against these previous expectations.
When looking at the drivers of this growth, Monica points specifically to the recently approved spot exchange-traded funds (ETFs). They bring in a new set of investors to Bitcoin, but, more importantly, he said, "It actually means that regulators can’t stand in the way of legitimate products and financial products forever." So, the landmark decision to approve Bitcoin ETFs actually feeds into speculation for other products, such as Ethereum ETFs and Solana ETFs, which Monica is "sure are coming to market."
To Monica, the Bitcoin ETFs are only the "starting gun" for more and more crypto adoption and approval at an institutional level in terms of potential new products. Monica makes the point that the Bitcoin ETFs cleared a large hurdle in terms of infrastructure, saying that the ETFs brought the "same level of quality and reliability as the infrastructure from traditional finance is for traditional ETFs and that’s what we’ve got."x Now that the processes are in place and proven, it could make subsequent ETFs easier to manage and onboard.
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However, the most interesting part of the discussion revolved around Bitcoin volatility and Monica's future predictions. He said he is looking for investment opportunities that "are able to 10x at least." With the ability to 10x also comes the possibility of downside though, as Monica noted that Bitcoin could "go back to $40,000, [or] it could go higher." However, Monica says that his 10-plus years of experience in the space and being able to see the Bitcoin cycles has made it easier to handle the "waves" and "tides" that come with Bitcoin.
Another important point Monica makes is that during downturns, there is less attention on Bitcoin, which offers developers more of a chance to experiment and build out the ecosystem for the next bull market.
So, Monica is happy about where Bitcoin is currently and is willing to stomach any upcoming corrections, or even bear markets, that could be on the horizon.
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