Musk's Tesla made an investment of $1.5 billion in the cryptocurrency earlier this year. Musk tweeted ‘diamond hands’, which was interpreted by the market as the company’s commitment to hold on to its Bitcoin assets, and some said that’s what helped the cryptocurrency recover.Īt 11 am IST on Thursday, Bitcoin traded at $39,620, after hitting a high of $40,000. The most popular crypto them witnessed a spectacular rally to breach past the $40,000 mark on Thursday, data at Bitstamp, the Luxembourg-based crypto exchange, showed. The right way, for most people, is to not have concentrated positions,” he said.Īt the same time, Kamath also raised the red flag over the risks from leveraged trading that the crypto exchanges are offering.īitcoin, the largest cryptocurrency by market value, had plunged 30 per cent to hit the $30,000 level on Wednesday after China signalled a new crackdown on the cryptocurrency and Tesla CEO Elon Musk made a U-turn on his car company's use of the unit. “All it takes is one large move on the other side for things to go wrong. In a series of tweets overnight, Kamath said while it is tempting to average down, the odds of this strategy working out are significantly low in the long run.
“But the rules for investing are the same: Reduce percentage exposure if the risk is high, and do not average down,” he said. Nithin Kamath, Founder & CEO at Zerodha said he has no exposure to cryptocurrencies.
