Expert's forecast: who will survive the cryptocurrency winter

The decline in the cryptocurrency market in recent months scares many investors. The collapse of the Terra blockchain system, the complete shutdown of financial transactions with crypto on the Celsius Network platform cause analogies with the collapse of dot-coms at the turn of the millennium.

According to analysts, the sharp collapse of the exchange rate that bitcoin has recently experienced may be caused not only by the monetary policy of the US Federal Reserve, but also by inflation. Many investors are afraid of incurring significant losses and withdraw their assets from those markets where the risks are highest. The cryptocurrency market is one of those. In addition, the demand for bitcoin has noticeably decreased in the conditions of emerging stagnation.

Well-known investor and billionaire Mark Cuban shared his thoughts on the future of the cryptocurrency market. In a recent interview with Fortune, he quoted the expression of Warren Buffett, who used the metaphor of the sea tide, whose departure will allow you to see those who swam naked.

The owner of the NBA Dallas Mavericks group connects this analogy with those cryptocurrency companies that have been successful solely in connection with cheap money. Those of them who do not have a serious development strategy are unlikely to be able to survive the "crypto winter".

Only strong and healthy firms can survive, the investor believes.

Kuban himself is considered by many to be a "convert" in the crypt market. A few years ago, an entrepreneur called investing in bitcoin less successful than investing in banana trading, stating that between these alternatives he would rather choose the second one. Since then, his position has changed. Now, according to Forbes, he owns a fortune of $4.7 billion. His investment portfolio includes not only bitcoins, but also NFT and Ethereum, of which he is an ardent enthusiast.

According to the expert, the negative sentiment in the crypto market is obvious, but the current downturn will inevitably lead to the emergence of innovative solutions, as it was two decades ago.

The release of appropriate technologies during the bear market will lead to the success of those who find their place in it.

He drew attention to the fact that the current decline in digital currencies is directly related to the Nasdaq stock index. Given that the shares of many technology companies are traded on the stock exchange, the correlation seems quite obvious. Therefore, according to Cuban, the base rate influences the development of the crypt.

The growing key rate causes difficulties for everyone until it is taken into account in the pricing process. Exceptions in this situation are only those companies that manage to change the rules of the game in the market.