With the market down as tensions escalate in Eastern Europe, Dr. Rawlin Chai, co-founder and CEO of the IoTeX blockchain network, urges crypto investors to keep their cryptocurrencies.
The Russian military recently launched an attack on Ukraine and fired rockets at the second largest European country. According to Cointelegraph Markets Pro, after that, the crypto markets fell sharply, with all major coins falling 8-18%. However, despite current market conditions, Chai advises owners to think carefully before selling their digital assets.
Chai told the Cointelegraph that while Bitcoin (BTC) can not fall below $ 10,000 and Ethereum (ETH) can not fall below $ 800, the market can easily reach all-time highs by the end of the year. That is to explain:
“I certainly do not want to encourage investors to sell their cryptocurrency now in the hope of buying it back at a lower price, the truth is that no one knows when we will hit bottom and when the market will go up again.”
While Chai’s general sentiment is optimistic, he identified factors that could lead to further price declines in the cryptocurrency market. The IoTeX co-founder says that the Russian invasion, together with higher interest rates and the potential for new alternatives emerging for COVID-19, could damage the market in the short term:
“In addition, tensions between Russia and Ukraine – as well as other geopolitical and trade frictions – need to be monitored as they can confuse institutional and individual investors and lead to massive price changes due to reduced risk appetite.”
Related: Bitcoin falls 12% as Russian ruble hits all-time low against US dollar due to “military operation” in Ukraine
Meanwhile, a recent report from hedge fund Pantera Capital showed that Bitcoin is currently relatively cheap, noting that several factors may affect the next rally. According to Pantera, warning signs from the debt markets and negative real prices could give Bitcoin the rocket fuel it needs to restart the trend.