Is the Bear Market a Purge of Crypto Projects?
IoTeX CEO Raullen Chai said in a comment to CryptoDaily that the current bearish sentiment in the cryptocurrency market will help highlight truly strong projects.
According to him, external factors, such as a new strain of coronavirus and a possible increase in the base rate by the Federal Reserve System, influenced the decline in cryptocurrency rates.
Chai recommended investing in crypto projects with a strong use case and utility that can survive the bearish one and recover when the macroeconomic situation becomes more favorable.
According to him, it is not yet possible to determine the bottom, and therefore it is not a good idea to sell cryptocurrency when the rate goes down.
“Selling in hopes of a buyout at a lower price is impractical and looks more like trading than investing,” Chai added.