The market could “easily reach new all-time highs by the end of the year,” says IoTeX co-founder Dr. Raullen Chai.
As the market dips over escalating tensions in Eastern Europe, Dr. Raullen Chai, the co-founder and CEO of blockchain network IoTeX, is urging crypto investors to hold on to their crypto.
The Russian army recently started its advance on Ukraine, firing missiles on the second-largest European country. Following this, crypto markets took a nosedive, with all the top coins dropping between 8% and 18%, according to Cointelegraph Markets Pro. However, despite the current market conditions, Chai tells holders to think twice before selling their digital assets.
Chai told Cointelegraph that, while it’s not impossible for Bitcoin (BTC) to fall below $10,000 and Ethereum (ETH) to fall below $800, the market could “easily reach new all-time highs by the end of the year.” He explained:
“I would certainly not encourage investors to sell their crypto now in the hopes of buying back at a cheaper price, as the reality is no one knows when we will reach the bottom and when the market will rally again.”
While Chai’s general sentiments are bullish, he identified factors that could drive the crypto market prices further down. The IoTeX co-founder says that the Russian invasion, combined with rising interest rates and the prospect of new COVID-19 variants, could all affect the market negatively in the short term:
“Additionally, tensions between Russia and Ukraine — in addition to other geopolitical and trade tensions — should be monitored, as they can unnerve institutional and retail investors and lead to huge price changes due to reduced risk appetite.”
Related: Bitcoin dips 12% as Russian ruble hits all-time low against USD on Ukraine ‘military operation’
Meanwhile, a recent report from hedge fund Pantera Capital shows that Bitcoin is currently relatively inexpensive, noting that several factors may affect the next rally. According to Pantera, warning signs from the debt markets and negative real rates could provide Bitcoin with the rocket fuel it needs to resume its bullish uptrend.