July 01, 2022 | Read Online

Why this crypto winter might last a while

Tom Loverro recently shared his thoughts on the current state of the market. He's been in the crypto space since 2013, he was on the Coinbase board till 2021 and led its Series D fundraise. He's seen a fair few market cycles.

His first prediction is that crypto will go even lower. This goes against what many VCs and investors think. They are expecting a quick rebound, which is what happened after the Covid crash. But Loverro argues that the Covid crash was a black swan event, and this is not a black swan event - this is a bear market.

Going from peak to the absolute bottom has taken 12 months, on average, when looking at previous cycles. The price of Bitcoin peaked in November 2021 so Loverro expects any reversal to come after November 2022 at the very earliest.

Right now, Crypto is in the headlines for all the wrong reasons....

Loverro believes that we won't reach the bottom of the market until crypto is out of the headlines completely. At this point, indifference will have set in. He believes we need to wait until "the tourists have left".

But it's not all bad news

Loverro says now is the time to build and grab market share. Bull markets are about riding the wave and trying to keep up with demand, but bear markets are a time for innovation. He gives the example of Coinbase, where they used the crypto winter of 2018-2019 to make tough decisions and innovate on their product.

"My advice now is: Have enough cash to get through the next 30-36 months and, even more importantly, sufficient FAITH to survive the winter without wavering or chasing new and non-crypto directions. Crypto will come back bigger than ever.🔥"

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Why this crypto winter might last a while

Why this crypto winter might last a while

But it's not all bad news

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