Despite the downturn that the cryptocurrency market has witnessed in recent weeks and months, there’s no reason to be less bullish on crypto, according to IoTeX co-founder and CEO Dr Raullen Chai.
Bitcoin, currently trading at circa $38,820 according to CoinMarketCap data, is down 18 percent over the last week and roughly 40 percent less valuable than the all-time high it reached in November.
Ethereum – the second most popular cryptocurrency by market cap – has suffered a similar fate, with it losing over a quarter of its value in the last 30 days.
Many altcoins have suffered much sharper drops over this period, but Dr Chai told CryptoDaily on Tuesday that he doesn’t believe the bullish case for crypto has changed.
“The bullish case for crypto hasn’t changed at all in recent months, despite hundreds of billions of dollars of market cap being wiped out,” the IoTeX CEO said.
“Crucially, crypto prices have taken a hit as a result of macroeconomic concerns and developments, particularly the heightened risk of the Fed hiking interest rates this year and concerns about the Omicron variant.”
Continuing, Dr Chai – formerly of Uber and Google – emphasised that the fundamentals surrounding individual cryptocurrency projects and tokens haven’t changed while crypto prices have been falling, so he doesn’t see the future of serious crypto projects which solve real-world problems being thrown into jeopardy.
“The fundamentals haven’t changed, so investors still have plenty of reasons to be bullish on crypto.
“The most important thing is to invest in projects and tokens with strong use cases and utility, which can survive a ‘bear market’ (if we enter one) and recover once the macroeconomic environment clears up and becomes more favourable.”
Asked if he believes investors should sell their crypto and wait for prices to dip further, the crypto and tech pioneer cautioned that it is “virtually impossible” to know when the bottom has been reached, so selling your crypto now could result in you missing out on gains and ending up buying back at a higher price.
“It’s very difficult to accurately predict where crypto prices will go over the coming days and weeks, and virtually impossible to know when we have reached the bottom. Therefore, selling in the hope of buying back at a lower price is ill-advised and is more akin to trading than investing,” he explained.
“Having said that, it can be a good idea to add to your crypto portfolio when prices fall to lower your cost basis, as long as you are investing in tokens with strong utility and trustworthy/doxed developers.”
Dr Chai’s IoTeX project is an Internet of Things (IoT) blockchain, and, with a market cap in excess of $700 million, their token, IOTX, is one of the 100 most popular cryptocurrencies in the world.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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