Galaxy Digital’s CEO said that given the U.S. Federal Reserve’s policy and the bearish trend, the market is expecting another significant drop in altcoins.
Mike Novogratz warned on Twitter that altcoins could be subjected to a significant devaluation and lose more than half of their value. According to the businessman, altcoins will not be saved from depreciation even by the fact that their prices have already fallen significantly compared to their historic highs:
“Alternative cryptocurrencies have already fallen more than 80% from their highs. In 2017, their drop from their highs was over 95%. We have another 70% drop ahead of us. I think buying altcoins at the bottom is dangerous, and if you do, gradually increase the volume of cryptocurrencies in your portfolio.”
The billionaire makes gloomy predictions for the entire financial market, suggesting that crypto-assets are likely to decline in value for a long time:
“The problem with risk modeling is that all of the examples of stress over the past three decades that have led to the downside have occurred in the context of Federal Reserve policy easing. We are still in the early stages of the tightening cycle. That means trusting traditional models and even intuition less.”
Despite the fact that the market is in a bearish trend, the billionaire remains optimistic and believes that cryptocurrency markets will eventually recover.