Prepare for the Crypto Market’s Worst Months, Says CoinGecko Founder

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

In addition, according to Bobby, the actions of the US central bank (Fed) play an important role, which has no choice but to raise interest rates to reduce inflation.

Bobby Ong, COO of CoinGecko, stated that cryptocurrencies are in the midst of a bear market, with the Russian invasion of Ukraine and supply chain issues leading to persistent inflation.

Bobby says that the Fed “he has no choice” that raising interest rates to contain inflation and that, as a result, growth stocks are under attack.

“With institutional involvement, cryptocurrencies are now highly correlated to traditional finance and are considered risky assets, so they also suffer greatly.

In the last 6 months, the market capitalization of many public technology stocks has dropped by 75%. Are we at the bottom? From that perspective, we are at the beginning of a rate tightening cycle by the Fed, which will have to raise rates steadily in the coming quarters to control inflation.”

Prepare for more falls

While most investors start with Bitcoin Y ethereum, they quickly move to altcoins in search of bigger gains. The entire ecosystem has been affected by the recent drop in Bitcoin. In November 2021, Bitcoin reached a high of almost $69,000. It has plummeted to $33,000 this month.

According to the Coingecko co-founder, the cryptocurrency market is highly volatile, as was shown after the collapse of the cryptocurrency Terra (LUNA)which has lost 99% of its market capitalization in the last two weeks.

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

12 to 18 months of fall

As for the duration of the cryptocurrency bear market, Ong believes that it will not be short and CoinGecko has had to “prepare for tough times, watch spending, focus on optimizing revenue, and build things the community wants.”

He also noted that CoinGecko will not lay off employees during the bear market, as highlighted in the tweets below.

“Unfortunately, we are only at the beginning of the rate tightening cycle by the Federal Reserve. The Feds will have to continually raise interest rates in the coming quarters to control inflation and more trouble lies ahead. We told our team to expect the next 12-18 months to be challenging.

We are already in the bear market and it probably won’t be short. We have to prepare for difficult times, be careful with expenses, focus on optimizing income and build things that the community wants. Now is the time to roll up our sleeves and BUIDL [construir] for the next cycle.

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