According to Bobby Ong, co-founder of cryptocurrency statistics website CoinGecko, the cryptocurrency bear market has just begun.
In his opinion, the downward pressure is caused by macroeconomic factors, such as geopolitical tensions. In addition, the actions of the U.S. Federal Reserve, which has no choice but to raise interest rates in order to lower inflation, play a significant role.
With organizations now involved, cryptocurrency is highly correlated with TradFi (traditional finance) and is seen as a technology asset/risk asset, so it too suffers greatly.
In the last 6 months, the market capitalization of many publicly traded tech stocks has fallen 75%. Are we at the bottom?
From this point of view, we are at the beginning of the Fed’s rate tightening cycle, which will have to continually raise interest rates over the next few quarters to tame inflation.
That means there are even more problems ahead. We told our team that the next 12 to 18 months are going to be tough.
According to Ong, CoinGecko is preparing for a prolonged bear market by reconciling expenses and looking to raise revenues.