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The CEO of Galaxy Digital said that given the policy of the US Federal Reserve and the “bearish trend”, the market expects another significant drop in altcoins.
Mike Novogratz warned on Twitter that altcoins could undergo significant devaluation and lose more than half of their value. According to the businessman, altcoins will not protect against depreciation even the fact that their prices have already fallen significantly compared to their historical highs:
“Alternative cryptocurrencies have already fallen by more than 80% compared to their highs. In 2017, their fall from the maximum was more than 95%. We expect a drop of another 70%. I think buying altcoins at the bottom is dangerous, and if you do, gradually increase the volume of cryptocurrencies in the portfolio. “
The billionaire makes gloomy predictions for the entire financial market, suggesting that it is likely that crypto assets will decline in price for a long time:
“The problem with risk modeling is that all the examples of stress over the past three decades that have led to a minimum have occurred in the face of federal reserve policy easing. We are still in the early stages of the tightening cycle. This means that you need to trust traditional models and even intuition less.”
Despite the fact that there is a “bearish trend” in the market, the billionaire remains optimistic and believes that the cryptocurrency markets will eventually recover.
In April, Mike McGlone, senior commodities strategist at Bloomberg Intelligence, said that bitcoin will suffer the most from the fall of the stock market.
#altcoin #market #collapse