Global financial markets have been plunging recently, refreshing fears of a recession in the near future.
Co-founder of automated crypto trading platform Coinrule, Oleg Giberstein, thinks crypto is undergoing the same stresses as other parts of the economy, leading to the fall in prices.
He said: “It’s not just crypto that’s down, everything is down, and over the next 6-12 months, the economic outlook is bad…”
The price of bitcoin plunged below $26,000 on Thursday, hitting its lowest level in 16 months, while Ethereum, the second-biggest digital currency, tanked below $2,000 per coin.
Oleg Giberstein continued, “…Central Banks are between a rock and a hard place with regard to slow economic growth and high inflation. So, investors are escaping ‘risk-on’ assets like crypto and tech stocks.”
The wider cryptocurrency selloff has wiped over $200 billion of wealth from the market in just 24 hours, according to estimates from the price-tracking website CoinMarketCap.
At the time of writing this, Bitcoin’s price was $29,786, and Ethereum’s price was $2065.
According to Time.com, experts still say Bitcoin will hit $100,000 — and that it’s more a matter of when, not if.
“What I expect from Bitcoin is volatility [in the] short-term and growth [in the] long-term,” says Kiana Danial, founder of Invest Diva and author of “Cryptocurrency Investing For Dummies.”
As with most investments, you should have a long-term mindset if you invest in financial markets. Markets may have extreme volatility in the short-term but steadily increase in price over the years.
This article is not investment advice, and you should consult with a licensed professional and do your own research before investing in the financial markets.