Raullen Chai, co-founder and CEO of IoTeX, believes that the digital asset market continues to be bullish despite the recent decline in the price of bitcoin.
The price of the first cryptocurrency has fallen by about 18% over the past week and 40% from its all-time high of $69,000 reached in November. Ether, the second largest cryptocurrency by market capitalization, has lost about a quarter of its value in the last 30 days and is now trading at $285 per coin. Since the beginning of the year, many altcoins have also experienced significant losses.
The market decline was affected by macroeconomic problems, including the risk of an increase in interest rates by the US Federal Reserve System (Fed) to fight inflation and fears in connection with the spread of a new strain of coronavirus Omicron. However, with the current volatility in the cryptocurrency market, IoTeX co-founder Raullen Chai is optimistic.
“In recent months, bullishness towards cryptocurrencies has not changed, despite the fact that hundreds of billions of dollars have been destroyed in the market. There is still plenty of reason for investors to be optimistic,” the IoTeX CEO said.
He explained that the basic principles of Bitcoin and other serious cryptocurrency projects aimed at solving real problems remained the same. Therefore, they will not be affected by the fall of the market. Chai recommended that users invest in digital assets with well thought out use cases and community benefits. According to him, such crypto assets will be able to survive the “bear market” and recover as soon as the macroeconomic environment becomes more favorable.
Chai is convinced that investors should not sell their crypto assets in anticipation of a further fall in prices, since it is impossible to predict in which direction the market will move. Now the sale of digital assets can lead to the fact that investors miss out on profits, and ultimately they will be forced to re-buy cryptocurrencies at a high rate, Chai suggested.
The IoTeX co-founder is not the only one who remains optimistic about cryptocurrencies. James Quinn, managing partner at investment platform Q9 Capital, recently said that the depreciation of bitcoin only increased the flow of funds from large institutions. The president of the FTX exchange, Brett Harrison, believes that further institutional investments will help stabilize the bitcoin exchange rate.
Source: Bits
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