Famous cryptocurrency investor and entrepreneur billionaire Michael Novogratz, altcoin shared his views on the current state of the market.
The Best Time for a Bottom for Altcoins Is Not Yet, According to Mike Novogratz
Novogratz reminded his followers of the sad times of Crypto Winter 2018, when the prices of major altcoins lost 95% of their value compared to December 2017 highs.
According to Novogratz, altcoins have only dropped 80% in this market cycle. According to Novogratz, for a collapse similar to the one in 2018, altcoins need to lose 70% of their value from their current levels. That’s why the famous billionaire thinks there is still potential for a downturn.
This is why Novogratz said he is confident crypto traders should not look for temporary bottoms at this stage of the market cycle. According to Novogratz, this strategy will not be profitable, at least in the short-term perspective.
Alts are down over 80 percent from the highs. In 2017 it was over 95 percent.
That is down another 70 percent.
My point is picking bottoms is dangerous and if you do scale in slowly.
— Mike Novogratz (@novogratz) May 20, 2022
As is known, Novogratz, Terra (Luna) He was among the most passionate advocates of the ecosystem. The famous billionaire, who also got LUNA’s tattoo on his arm, made a statement days after Terra’s collapse and argued that this project was a “big idea that failed.”
Cryptocurrency Fear and Greed Index Remains in the Area of Extreme Fear
Bitcoin (BTC) and major altcoins are trying to recover from the mid-May crash. On May 11-12, 2022, the cryptocurrency market cap dropped to $1.17 trillion.
The Crypto Fear and Greed index fell to 8/100, a 30-month low. At the time of this writing, the same index continues to be in the extreme fear area with the level of 13/100.
*Not investment advice.