Kavita Gupta is the Founder and General Partner at Delta Blockchain Fund, boasting over 18 years of investment experience garnered through positions at The World Bank, IFC, and the Eric Schmidt Family office. She pioneered one of the first blockchain early-stage funds, ConsenSys Ventures, and an accelerator named Tachyon. Kavita has made initial investments in influential companies such as Polygon, Starkware, Quantstamp, and Sorare, contributing to a portfolio of over 100 companies.
Additionally, she is a visiting scholar at Stanford University, where she teaches the “Beyond Bitcoin” class. Kavita also serves as an advisor to several organizations, including the Hus Institute, UNICEF’s Giga project, Katapult investment fund, and the International Emmys. Her contributions to innovation were recognized in 2015 when she received the UN Innovation Award for her role in the creation of green and social impact bonds.
On 15 April 2024, Gupta appeared on CNBC’s “Squawk Box” to discuss the recent dynamics in the cryptocurrency market, including the Bitcoin halving (expected 19-20 April 2024) and other influential factors affecting the crypto landscape.
Gupta began by addressing the recent price actions in the cryptocurrency market, which saw significant fluctuations over the weekend, attributed partly to geopolitical tensions between Iran and Israel and tax-related liquidity issues. She noted that the market experienced a squeeze in liquidity due to these factors, leading to a short-term decline in prices.
She explained that the combination of increased geopolitical risk and the approaching deadline for tax payments in the U.S. contributed to market volatility. However, she observed a recovery in crypto prices following these initial declines, supported by positive developments such as the approval of Bitcoin and Ethereum ETFs in Hong Kong, which helped to restore investor sentiment.
As CryptoGlobe reported earlier today, Hong Kong’s securities watchdog has granted approval for the first spot Bitcoin and Ethereum exchange-traded funds (ETFs). According to Nikkei Asia, the Hong Kong branches of Bosera Asset Management and China Asset Management have announced in individual statements that they have secured the necessary approvals from the Hong Kong Securities and Futures Commission (SFC) to issue these ETFs.
Gupta pointed out that liquidity typically tightens around March and April due to tax filings, with individuals realizing they might owe more than anticipated. She believes that this annual phenomenon can lead to significant price volatility in the cryptocurrency market.
Discussing the Bitcoin halving, Gupta mentioned that such events are generally expected to be bullish for Bitcoin’s price due to the reduced supply of new coins entering the market. However, she noted that the impact of the halving might already be priced in by the market, as these events are known well in advance, and the market tends to anticipate them.
Gupta expressed her belief that the market could see a correction, estimating a potential pullback of 15% to 25%. She attributed this expected correction to the combined effects of market anticipation of the halving event and ongoing external economic pressures.
Looking ahead, Gupta was optimistic about the long-term prospects of the cryptocurrency market.
Featured Image via Pixabay
