The market could “easily hit new all-time highs by the end of the year,” says Dr. Raullen Chai, co-founder of IoTeX.
As the market crashes due to rising tensions in Eastern Europe, Dr. Raullen Chai, co-founder and CEO of blockchain network IoTeX, urges crypto investors to hold on to their crypto.
The Russian military recently began its advance into Ukraine, firing missiles at Europe’s second-largest country. After that, crypto markets tanked, with all major coins down between 8% and 18%, according to Cointelegraph Markets Pro. However, despite current market conditions, Chai tells holders that think twice before selling your digital assets.
Chai told Cointelegraph that while it is not impossible for Bitcoin (BTC) to drop below $10,000 and Ethereum (ETH) below $800, the market could “easily hit new all-time highs by the end of the year.” He explained:
“I certainly would not encourage investors to sell their crypto now in the hope of buying it back at a cheaper price, as the reality is that no one knows when we will bottom out and when the market will rise again.”
While Chai’s overall sentiments are optimistic, he has identified factors that could further depress cryptocurrency market prices. The IoTeX co-founder says that the Russian invasion, combined with rising interest rates and the prospect of new variants of COVID-19, could negatively affect the market in the short term:
“Furthermore, tensions between Russia and Ukraine, in addition to other geopolitical and trade tensions, should be monitored as they may unnerve institutional and retail investors and lead to major price swings due to reduced risk appetite.”
Related: Bitcoin Drops 12% as Russian Ruble Hits Record Low Against Dollar in Ukraine ‘Military Operation’
Meanwhile, a recent report from hedge fund Pantera Capital shows that Bitcoin is currently relatively cheap, noting that several factors could affect the next rally. According to Pantera, warning signs from debt markets and negative real rates could provide Bitcoin with the fuel it needs to resume its uptrend.