Jim Greco, general partner of crypto company F9 Research, evaluated the latest situation in the cryptocurrency market.
F9 Research’s Jim Greco joined The Block’s podcast program The Scoop. Stating that the recent collapse in the crypto market was due to macro concerns about the persistence of inflation, Greco said that only strong crypto companies will survive in this process.
As we have mentioned before, the US inflation data announced last Friday was 8.6%, above the expectations. While the aforementioned data increased the pressure on the Fed to increase interest rates, it also caused a decrease in risky assets. Not only the crypto market, but also the US stock market suffered a steep decline.
Greco also believes this decline will bring the inflated valuations of crypto companies to real levels:
“Were these companies ever worth $10 billion or whatever their valuation was? It probably wasn’t. I think it was just investors who looked at the direction of volumes and volatility last year and thought they wouldn’t stop until 2025. But now we’ve had a major correction and it’s pretty clear what these projections for 2025 look like now, and it doesn’t even have anything to do with these projections.”
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