Reading time: ~2 m
According to Bobby Ong, co-founder of cryptocurrency statistics site CoinGecko, the cryptocurrency bear market has just begun.
In his opinion, the downward pressure is due to macroeconomic factors, for example, geopolitical tensions. In addition, a significant role is played by the actions of the US Federal Reserve, which has no choice but to raise interest rates in order to lower inflation.
With the participation of organizations, cryptocurrency is now strongly correlated with TradFi (traditional finance) and is seen as a technology asset/risky asset, so it suffers a lot too.
Over the past 6 months, the market capitalization of many public shares of technology companies has fallen by 75%. Are we at the bottom?
From this perspective, we are at the beginning of the Fed’s rate-tightening cycle, which will have to constantly raise interest rates over the next few quarters to tame inflation.
This means that there are even more problems ahead. We told our team that the next 12-18 months would be challenging.
According to Ong, CoinGecko is preparing for a prolonged bear market by adjusting spending and seeking to boost revenues.
#CoinGecko #founder #believes #bear #market #year
