Ray Dalio, founder and billionaire of Bridgewater Associates, commented on the markets in general. Another billionaire, Mike Novogratz, shared his prediction for the end of the bear market in Bitcoin and altcoins. Here are the details…
Ray Dalio not very hopeful for market recovery
Ray Dalio thinks that the tightening of the monetary policy in the USA and the global crisis will affect the markets. Therefore, he believes that the financial markets will be in bad shape for the next five years. Unfortunately, he says, the same rule will most likely apply to the cryptocurrency market. Despite the massive correction we saw in 2014, 2017 and 2022, cryptocurrencies have made profits of up to 10,000 percent over the past decade. Therefore, it was among the most profitable assets on the market.
Ray Dalio has said he expects "negative or poor real returns" in markets for the next five years.
— unusual_whales (@unusual_whales) October 12, 2022
However, the increase in inflation experienced throughout the world and the troubled situation in the economies caused the interest rate increase cycle to begin. With the tightening of monetary policy, investors are diverting their funds away from high-risk assets such as Bitcoin and altcoins. According to experts, this trend will continue until the Fed and other financial regulators come out of this cycle.
But the change in monetary policy will not have an immediate impact on the stock market. That’s why Dalio’s prediction is so negative. Historically, the end of the rate hike cycle leads to an average of 20 percent decline in indices like the S&P 500. Meanwhile, at the time of writing, BTC is facing a steep drop. The largest cryptocurrency fell 2.5% to $18,675. In the last 7 days, it lost 7.4 percent in value.
Mike Novogratz explained: When will the decline in Bitcoin and altcoins end?
cryptocoin.com As we have also reported, another billionaire name, Mike Novogratz, came to the fore with his latest comments. Novogratz said in a Yahoo Finance interview that Bitcoin (BTC) and altcoins will rise once the FED pauses monetary tightening measures. According to the CEO of Galaxy Digital, the sell-off in the crypto market was caused by increased interest rates from the Fed. He thinks that if the FED stops raising interest rates, Bitcoin and all other cryptocurrencies will recover. So, it conveys that there will be a break at some point.
As for when the crypto downturn might end, Novogratz says the bear market could last “up to six months.” “We have two to six months left,” he says, in a bear market. A bullish situation is seen when the market starts to break out. We’re seeing a lot of breakouts, according to Novogratz. Not just in crypto, but in the rest of the world as well. According to the Galaxy Digital CEO, sellers in the crypto market are largely exhausted.
