Cypherpunk Holdings, a Canadian investment firm, has sold all its bitcoin and ether assets to take advantage of the current market risks.
C$293,000 ($227,000) was the price paid by the company for 205.8209 Ethereum (ETH), and 214.7203 Bitcoin (BTC) at C$6.09million ($4.7million). According to a Tuesday announcement, the company earned a total C$6.38million ($5,000,000) from sales.
According to the company, it has C$18.16million ($14.1 Million) in cash and stablecoins. It also has approximately C$1.93million ($1.5 Million) for structured products that have a redemption notice of 30 days.
Cypherpunk CEO Jeff Gao stated that the firm decided to sell all its bitcoin and ether holdings due to rising market volatility, which has made asset tokens more risky for investors.
Bitcoin and ether both lost more than half of their value over the past year. They fell to 52-week lows earlier in this month. Canadian stock exchanges have seen shares fall 50%.
Gao stated that he believes it is prudent to wait for volatility and illiquidity contagion’s conclusion to take place. He said that he sees weaker price action opening up the possibility of lower levels. Also, he mentioned reports about chains placing a temporary suspension on withdrawals.
Gao stated that Cypherpunk will have a long-term bullish outlook on cryptocurrency and will seek to capitalize on future investment opportunities in this space.
Winter
The cryptocurrency market has been plunged into an especially icy cryptocurrency winter because investors reacted to decades of high inflation by selling riskier assets, leading markets and markets to fall.
A analysis of Arcane Research showed that bitcoin mining companies such as Riot Blockchain (RIOT), and Bitfarmss (BITF), collectively sold more than 100% off their total output in May, when the bitcoin price fell 45%.
Investors will likely continue to sell off cryptocurrency assets as economic headwinds continue to cause solvency problems for cryptocurrency lending and to spur large industry-wide layoffs. Until the market recovers, they will move their money into safer, more volatile store of value.
Moe Adham, Chief Investment Officer at Cypherpunk Holdings, stated that until the market turns the risks for cryptocurrency investors will remain’significant’.
Adham stated that “Crypto markets are still in a very risky environment.” He also said that there is still the possibility of significant price drops in crypto assets.