Prepare for Worst Cryptocurrency Months, Says CoinGecko Founder

According to the co-founder of crypto statistics website CoinGecko, the The cryptocurrency bear market is just beginning. For Bobby Ong, the downward pressure is due to macroeconomic factors, such as geopolitical tensions.

Moreover, according to Bobby, the actions of the US central bank (Fed) play a significant role, which has no choice but to raise interest rates to reduce inflation.

Bobby Ong, who is the COO of CoinGecko, said that cryptocurrencies are in the midst of a bear market, with Russia’s invasion of Ukraine and supply chain issues generating persistent inflation.

Bobby claims the Fed “no choice” other than raising interest rates to contain inflation and that growth stocks are attacked accordingly.

“With institutional involvement, cryptocurrencies are now highly correlated to traditional finance and seen as risky assets, so they are also suffering a lot.

“Over the past 6 months, the market capitalization of many public shares of technology companies has fallen by 75%. Are we down? From this perspective, we are at the start of a rate-tightening cycle by the Fed, which will need to consistently raise rates over the next few quarters to bring inflation under control.

Get ready for more drops

While most investors start with Bitcoin and Etherium, they quickly move on to altcoins in search of bigger profits. The entire ecosystem has been affected by the recent Bitcoin crash. In November 2021, Bitcoin peaked at nearly $69,000. It dropped to $33,000 this month.

According to the co-founder of Coingecko, the cryptocurrency market is very volatile, as demonstrated after the collapse of the cryptocurrency Terra (LUNA), which lost 99% of its market capitalization over the past two last weeks.

Additionally, the downturn in the cryptocurrency market is being catalyzed by a macro bear market like the war in Ukraine, and supply chain issues continue to cause persistent inflation.

Curfew from 12 to 18 months

As for how long the crypto bear market will last, Ong believes it won’t be short and CoinGecko had to “prepare for tough times, be careful with spending, focus on revenue optimization and build this what the community wants.

He also stressed that CoinGecko would not be laying off employees during the bear market, highlighted in the tweets below.

“Unfortunately, we are only at the start of the Fed rate-tightening cycle. Feds will need to continually raise interest rates over the next few quarters to keep inflation under control and more pains ahead. We told our team to expect the next 12-18 months to be tough.

“We are already in the bear market and it probably won’t be short. We need to prepare for tough times, watch our spending, focus on maximizing revenue, and building things the community wants. Now is the time to roll up your sleeves and BUIDL [construir] for the next cycle.

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