Tom Loverro, who served on the board of directors of the global cryptocurrency exchange Coinbase until 2021, shared his comments about the ongoing Bitcoin and altcoin winter. He posted a detailed Twitter post giving information on how the market will circumvent this. Here are the details…
Loverro: Cryptocurrencies will take time to recover
In June 2022, Bitcoin dropped below the $20,000 level. Many experts predict that BTC could decline further. Among them is Tom Loverro, a former board member of Coinbase. Loverro acknowledges that 2022 will continue to be a tough year for crypto, with the market going even lower than it is currently.
He predicts that the situation will continue until 2023. However, he thinks things can start to improve only in the second half of 2023 or by the end of the year. According to Loverro, it will take roughly the same time to recover, as it took 12 months for the market to go from “crypto top to bottom.” Loverro uses the following expressions:
The Bottom will not come in the current horror stage. But later on, once indifference begins, crypto will no longer make the headlines. So, the ‘tourists’ will leave. This process will take months.
Loverro said that VC firms and crypto investors are suffering from “innovation bias” as they expect an immediate recovery. Many of these investors are comparing the current situation to the 2020 Covid “black swan event”. Loverro points out that the current market situation is a result of rising interest rates. Therefore, the market will not recover until rates stabilize.
Bitcoin and altcoin market has not bottomed yet
In fact, according to Loverro, the market still hasn’t bottomed out. FUD (fear, uncertainty and doubt) in the industry continues to keep investors busy. Individual investors are still looking for innovation and momentum in the market. However, the real bottom will be reached this year, when crypto is no longer talked about. That’s when ordinary investors or “tourists” will withdraw from the market and indifference will begin. Loverro also explains how to make the most of the market situation. He believes the bear market is the time to innovate and build market share.
Innovations should focus on creating new applications and use cases for digital assets, especially in the individual domain. He also believes the industry should focus on reducing taxes and improving infrastructure layers. Loverro strongly advised investors to stay strong in the next 30-36 months of crypto winter to enter a bigger market than ever before. As we reported as Kriptokoin.com, cryptos have been collected in the last two years, primarily with easy money printed by the FED. The correction now reflects the end of that era, according to Loverro.
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