While cryptocurrency community members are guessing whether the bottom is already in for major assets, Mr. Novogratz recommends being careful
Well-known cryptocurrency investor and entrepreneur Michael Novogratz has shared his concerns about the current situation in the altcoin market.
Best times for “bottoms” are yet to come
Mr. Novogratz recalled the sad times of 2018’s Crypto Winter when the prices of major altcoins lost 95% compared to the highest levels of December 2017.
According to him, as of May 20, 2022, most of the time, altcoins have crashed only 80%. As such, there’s great potential for downside for them, Novogratz speculates.
That is why he is sure that crypto traders should not be seeking local bottoms in this phase of the market cycle. At least, this strategy will not be profitable in the short-term perspective.
As covered by U.Today previously, Mr. Novogratz was among the most passionate supporters of the Terra (LUNA) ecosystem.
As it collapsed, he called its stablecoin, TerraUSD (UST), the “big idea that failed.”
Crypto markets are still dominated by extreme fear
Bitcoin (BTC) and major altcoins are trying to recover from the unwitnessed carnage of mid-May. On May 11 and 12, 2022, the market capitalization of cryptocurrencies reached $1.17 trillion: it has not been this low since the beginning of February 2022.
The Crypto Fear and Greed index by Alternative.me dipped to a 30-month low at 8/100: this is equal to the levels crypto markets were at before the “Xi Spike” of Q3, 2019.
At press time, the market still cannot recover from the “Extreme Fear” zone: the index is at 11/100.
Bitcoin (BTC), the largest cryptocurrency, yet again failed to stay above the $30,000 level: it is changing hands at $29,960 on major spot platforms.
