Dr. Raullen Chai, the co-founder and CEO of blockchain network IoTeX, is recommending crypto investors not panic and hold on to their crypto while the market dips due to growing tensions in Eastern Europe.
As TheCoinRise reported, the Russian army has lately begun an attack against Ukraine, shooting missiles at Europe’s second-largest country. We reported the plunge in crypto markets after this, with all of the leading coins dropping between 8% and 18%. Despite the current market conditions, Chai advises digital asset owners to think hard before selling.
While it’s not impossible for Bitcoin (BTC) and Ethereum (ETH) to fall below $10,000 and $800, Chai believes the market will “easily reach new all-time highs by the end of the year.”
Investors should look at the Factors that might lead to downward motion
He elaborated, “I would certainly not encourage investors to sell their crypto now in the hopes of buying back at a lower price, as the reality is no one knows when we will reach the bottom and when the market will rally again.”
While Chai’s overall outlook is positive, he has highlighted issues that could cause the crypto market to fall further. According to the co-founder of IoTeX, the Russian invasion, along with rising interest rates and the possibility of additional COVID-19 variants, might all have a detrimental impact on the market in the short term:
“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.”
We already have reported that long-term investors are highly interested in the crypto market despite the existing short-term fall.
Meanwhile, according to a new analysis from hedge firm Pantera Capital, Bitcoin is currently reasonably low in price, albeit various factors could influence the next increase. Warning flags from the debt markets and negative real rates, according to Pantera, might give Bitcoin the boost it needs to resume its upward trajectory.