A crypto CEO predicting Ethereum’s January sell-off explains why investors shouldn’t panic about the crypto winter. The CEO also shares when Bitcoin (BTC) and other coins could return to their all-time highs. Ether Capital CEO Brian Mosoff warned of the January Ether sale in mid-December. Mosoff shared his view on the crypto market and Bitcoin, including how much the tokens will drop and when they will recover. Details are on Kriptokoin.com.
Bitcoin and altcoins overview
Cryptocurrencies are much more than a “get-rich-quick” scheme. Many investors have bought digital tokens over the past two years just to make quick money, and many have been successful. But Brian Mosoff has a completely different mindset than these risk takers. The Ether Capital CEO truly believes in digital currencies and their potential to transform the financial world, so the current crypto bear market doesn’t scare him. In fact, Mosoff predicted a pullback – at least partially. In mid-December, he told investors to expect Ether, the native token of the Ethereum network, to get off to a rough start in 2022. Ether Capital invests heavily in the Ethereum ecosystem and has $99.56 million in tokens as of January 20. Mosoff says:
In the short term – we’re talking now to the first month of next year – maybe a selloff. Maybe this sale is a market that needs to calm down after such a rapid rise. Maybe it’s driven by people who literally need to sell to meet their tax obligations.
Of course, by January 24, ether had sold up to 40%. Bitcoin (BTC), the largest cryptocurrency by market cap, fell by about 30%. Each recovered 33% and 21% respectively, but both are still around 40% below their mid-November all-time highs. A regression of this magnitude may cause those trying to “get rich quick” question why they bother with crypto. But Mosoff said in a recent interview that it’s a flawed mindset. “The fundamentals of crypto have not changed,” Mosoff said. And a lot of people focus only on the price of these assets, but forget to look beyond just the price,” he says. Mosoff continued:
In the two years since COVID, development, idea sharing, capital formation, infrastructure, structured products, regulators are starting to see clarity in this area. In terms of fundamentals, there has never been a better time for this asset class. And I think that’s what investors should focus on.
, however, Mosoff is not surprised that cryptos have been breathing for a long time. There was – and perhaps still is – plenty of bubbles in the digital asset market, and the Federal Reserve’s hawkish rhetoric has crushed much of that positive sentiment. Mosoff said he was surprised that cryptos have been falling with interest rate hikes recently, but that it is not a risk-free reward. “Every time there are these big increases, there will be a decline in prices,” Mosoff said. “This is not new to the asset class at all. So whether it’s a tax sale, people taking profits off the table, or people worried that the Fed will get a raise – it’s unclear to me,” he continued.
To endure or not to hold – that is the question
Crypto bulls no longer wonder if digital tokens will crash – digital tokens focus now on digital tokens find time to recover. By definition, a bear market is when assets fall 20% or more from their peaks. But cryptos are so volatile that the bear threshold should probably be lifted higher. Mosoff said he was hesitant to admit that cryptos are even in a bear market and therefore doubts that the crypto winter is bearish. Mosoff continued, “When I see the space starting to lose developers or people losing faith in whether the asset class will succeed, then I would call it winter. But I don’t think we’re at that point. We are a long way from this event.”
The fact that some of the brightest minds in finance are leaving for crypto startups gives Mosoff confidence that digital assets are more than a fad. Companies and institutions are slowly warming up and embracing crypto, and while they’re all wrong, bulls believe it’s less and less likely to happen. “What we’re seeing here is still the birth of a new asset class, the birth of new infrastructure, and the ability to still participate in the ground floor,” Mosoff said.
As for when investors can expect Bitcoin, Ether, and smaller altcoins to set new highs, Mosoff has one piece of advice: “Keep your hope, but don’t hold your breath.” “All-time highs may be 18 months away,” Mosoff says. “The reason I say this is because I think we are at this crossroads or inflection point of crypto when regulators globally understand this space and which agencies will oversee this space and provide clarity,” the CEO says. Regulatory clarity is the next big hurdle to eradicate cryptos. If he can get the regulation right, Mosoff said, the US has the opportunity to become “a leader in the free world for this new asset class.” “This may bring short-term pain, but it will provide clarity in the long-term,” says Mosoff.
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