Galaxy Digital CEO and Bitcoin (BTC) bull Mike Novogratzwarned crypto traders and underlined that altcoins can still record big drops.
Sharing on his account with more than 460,000 followers, Novogratz underlined that altcoins are at risk of losing more than half of their value, even if they experience a big drop from all-time highs.
“AltcoinsThe ‘s lost nearly 80% of their value from their highest levels. In 2017, this decrease was around 95%. I mean investing at the bottom may not always work, and if you choose to invest, plan well and don’t spend all your money in one go.”
Novogratz also expects a gloomy outlook across all financial markets and thinks crypto assets cannot escape this environment.
“One problem with risk modeling is that all examples of stresses that have led to bottoms in the past three decades have occurred in the Fed easing environment. We are still at the beginning of the tightening cycle. It means trust in models and even ‘intuition’ has to be lower.”
While Novogratz noted that the macro outlook appears to be bearish, he remains optimistic that the crypto markets will eventually recover.
“Crypto-assets are not going anywhere. The amount of capital entering the market is not slowing down either. The focus on creating decentralized infrastructure that allows value and property to flow as freely as information on the internet is not slowing down. Metaverse’s GDP is going one way. Our community is very resilient, with a shared belief in doing something new and the assurance that it is a very early start.”
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.