Galaxy Digital CEO and Bitcoin (BTC) bull Mike Novogratz is issuing a warning to crypto traders, saying that altcoins could still see massive devaluations.
Novogratz tells his 463,600 Twitter followers that altcoins are at still risk of losing more than half of their value even if they are already down big from their all-time highs.
“Alts are down over 80% from the highs. In 2017, it was over 95%.
That is down another 70%,
My point is picking bottoms is dangerous and if you do, scale in slowly.”
The billionaire also gives a gloomy outlook for the whole financial market, suggesting that crypto assets are likely headed to lower prices.
“One issue with risk modeling is that all the examples of stress in the past three decades which lead to bottoms happen in an environment of Fed easing. We are still early in tightening cycle. Means confidence in models and even ‘intuition’ has to be lower.”
Although Novogratz says the macro backdrop looks bearish, he remains optimistic that the crypto markets will eventually recover.
“Crypto is not going away. The amount of human capital moving into the space isn’t slowing down. The focus on building decentralized infrastructure that allows value and ownership to flow as freely as information on the internet, isn’t slowing down. The GDP of the metaverse is heading one way. Our community is resilient, has a shared belief in a new way of doing things, and the assurance that this is the very early innings.”
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