According to the co-founder of a leading cryptocurrency price tracking and data firm, the bear market for Bitcoin (BTC) and other altcoins may be just getting started. Making evaluations about the markets, the official said that the crypto bear market will last longer than expected. As Kriptokoin.com, we are transferring the details.
Bitcoin is seen as a risky asset associated with traditional finance
Bobby Ong, who also serves as chief operating officer of cryptocurrency price tracking and data firm CoinGecko. He says cryptocurrencies are in the midst of a macro-driven bear market, with Russia’s invasion of Ukraine and supply chain problems creating persistent inflation. He states that the US Federal Reserve has no choice but to raise interest rates to suppress inflation, and as a result, growth stocks are suppressed. In his statements on the subject, the manager includes the following words:
With the participation of corporate firms, Bitcoin (BTC) and other cryptocurrencies are now highly associated with TradFi [traditional finance] and a technology stock / is seen as a risky asset. For all these reasons, it takes a big hit. Many publicly traded tech stocks have seen their market cap drop nearly 75 percent in the past 6 months. Are we near the bottom? Unfortunately, we are only at the beginning of the Fed’s cycle of tightening interest rates. The Fed will need to keep increasing interest rates for the next few quarters to rein in inflation, and we will face more challenges. I can tell our team that we expect the next 12-18 months to be challenging.
According to firm official Bobby Ong, CoinGecko is preparing for a long bear market. Continuing his statements about Bitcoin, other cryptocurrencies and markets, the official said that he thinks the bear market will not be short, and he continues:
We are already in a bear market and most likely this process will not be short. We need to prepare for tough times, watch out for spending, focus on optimizing revenue, and build what the community wants. Now it’s time to roll up your sleeves and BUIDL [build] for the next loop.
Most of the investors are waiting in cash
Continuing his evaluations, Coingecko manager Bobby Ong states that many investors he knows are currently in cash and withdrawing their investments, saying:
Many investors I meet now have cash. Arthur Hayes expects more fall and chaos. Buyers of Bitcoin (BTC) only at $20,000 and Ethereum (ETH) at $1,300. It’s time to be extremely selective in your purchases and see you stronger on the other side of the trend!
