Mark Yusko, the investment expert and CEO of Morgan Creek Capital Management, has listed four cryptocurrencies that he believes can withstand the market downturn relatively better.
According to a Business Insider report, Yusko is one of the smart contract-enabled blockchains. Solana (SOL), Avalanche (AVAX), Cosmos (ATOM) and Polkadot (DOT) He said that his native tokens are among the cryptocurrencies that can survive the bear market.
Talking about Solana, the Morgan Creek founder noted that the seventh largest blockchain by market capitalization is a “great protocol”:
“There is probably still some potential for volatility in future price movements. But in the long run, I think it’s a great protocol.”
The next 12 months will fight the bear market
According to Yusko, cryptocurrencies will be in a bear market for the next 12 months before the next Bitcoin halving starts a bull cycle.
“What you are witnessing right now is that crypto is unequivocally in a bear cycle. Next halving before entering the next bull cycle that will be triggered by the [kripto] It will struggle for the next 12 months.”
The last Bitcoin (BTC) halving event took place in May 2020. The next one is expected to take place in the first six months of 2024.
Yusko also mentioned that Bitcoin is not associated with stocks, but may appear so in shorter timeframes. Bitcoin, for example, is down 7.77% to date compared to the tech-heavy Nasdaq, which has fallen 9.89% year-over-year following the Federal Reserve’s intention to raise interest rates.
“You can’t calculate correlation in the short run. Mathematics alone does not work in this regard. And yes, it’s also true that ‘all correlations go to one’ in times of stress. Looking a little further, Bitcoin’s correlation with stocks is 0.15 for long periods of time. Some weeks, some months it goes up, but in the long run it’s still 0.15 and 0 for bonds.”
The correlation can have a value between -1 and 1. The stronger the correlation, the higher the value, and the weaker the correlation, the lower the value.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.