According to
CoinGecko co-founder, the bear market may be just getting started.
Bobby Ong, COO at CoinGecko, says that cryptocurrency is in the midst of a macro-driven bear market, with Russia’s invasion of Ukraine and supply chain problems creating persistent inflation.
Ong said that the Fed had no choice but to raise interest rates to suppress inflation, and that stocks took a hit as a result.
“The crypto sector, with the participation of institutions, is highly correlated with traditional finance. For this reason, technology stocks are seen as risky assets and take a hit. Many publicly traded tech stocks have seen their market cap drop 75% in the last 6 months. Are we near the bottom?
Unfortunately, we are only at the beginning of the Fed’s cycle of tightening interest rates. Authorities will need to keep increasing interest rates over the next few quarters to contain inflation, which will cause more trouble. We told our team that they should expect the next 12-18 months to be tough”
According to Ong, CoinGecko is preparing for a long bear market.
“We are already in a bear market and it probably won’t be short. We need to prepare for tough times, watch out for spending, focus on optimizing revenue, and build what the community wants. Now is the time to roll up our sleeves and build the next era”
