Ark Invest, led by American investor Cathie Wood cryptocurrency leader Chris Burniske, in his post on his Twitter account, said that the developing NFT sector could be a sign of a bear signal for the crypto money market.
Fast-developing, according to the former crypto leader of Ark Invest NFT industry Ethereum It represents an illiquid and high-risk asset type, similar to an ICO-based ICO.
Comparing the rise in NFTs to the ICO scam in 2017, Burniske said that with the growth in this market, bitcoin and altcoins He pointed out the inverse correlation between the two and evaluated that this could be a long-term bear market sign.
“NFT volumes and prices were strong in January 2022. This shows that not everything in crypto may collapse at the same time.
With NFTs, the risk is at its extreme. They may be the last to be pumped by the breaths of a most illiquid and thus dying bull.
This does not mean that NFTs are not important. They are important.
We just know that the riskiest and most illiquid things are the last to get pumped in crypto.”
Comparing this table with 2013 and 2017, Burniske found that similar tables bitcoin and altcoins He said it happened between them.
Finally, pointing to the macro data, Burniske said, “If there is no macro chaos in the markets that causes everything to sell, and Bitcoin proves to be bottoming around here, maybe we can be okay.” said.
*Not Investment Advice.