The cryptocurrency market is heavily bearish at the moment, with Bitcoin still struggling below the $40k mark.
The co-founder of IoTeX, Dr. Raullen Chai, has urged cryptocurrency investors to hodl their investments amidst the current bearish market. According to Chai, the cryptocurrency market could reach new all-time highs by the end of the year.
Chai said that while Bitcoin could drop towards $10,000 and Ether to $800, the market could recover and easily reach new all-time highs by the end of 2022. He said;
“I would certainly not encourage investors to sell their crypto now in the hopes of buying back at a cheaper price, as the reality is no one knows when we will reach the bottom and when the market will rally again.”
Chai is currently bullish about the cryptocurrency market but admits that certain factors could work against the market.
He cited the Russian invasion, alongside rising interest rates and the prospect of new COVID-19 variants, as some factors that could negatively affect the performance of the crypto market. Chai said;
“Additionally, tensions between Russia and Ukraine — in addition to other geopolitical and trade tensions — should be monitored, as they can unnerve institutional and retail investors and lead to huge price changes due to reduced risk appetite.”
The cryptocurrency market has been in a bearish trend since November. In November, Bitcoin hit a new all-time high of $69,044 while Ether nearly crossed the $5,000 psychological level.
However, Bitcoin has lost more than 45% of its value since then and currently trades around $38k per coin. Ether has also lost more than 40% of its value and is trading above $2,600.
The total cryptocurrency market cap dropped from the all-time high of $3 trillion to now stand above $1.7 trillion. There have been varying predictions about the cryptocurrency market, with some expecting the bearish trend to last for a while.