According to Tom Loverro, rates of digital currencies will bottom out when the prevailing mood among investors becomes indifference

Ex-Coinbase exec called the possible timeline for crypto market recovery

29.06.2022 - 14:00


2 min

What’s new? Former exec of cryptocurrency exchange Coinbase Tom Loverro believes it could take many months for the digital asset market to fully recover. In his opinion, cryptocurrency rates have not yet bottomed out and will continue to decline in 2022. Loverro explained that a quick rebound like in 2020 is impossible because the current situation is not shaped by a black swan like the COVID-19 pandemic, but by the tightening monetary policy of the US Federal Reserve System (Fed) amid rising inflation.

What else does Loverro say? He notes that panic is now prevalent among crypto investors. For example, as of June 29, the Fear and Greed Index (F&G) of the crypto market is 13/100 and is in a range that demonstrates the extreme concern of traders. However, according to the former Coinbase CEO, the bottom of the market will be reached after “indifference sets in, crypto is no longer making headlines.” He advised investors to stock up on enough cash for the next 30-36 months to survive the crypto winter.

That said, Loverro sees the crypto winter as a good time to focus on innovation and gaining market share. Earlier, Cardano blockchain founder Charles Hoskinson also said he focused on improving the network and interacting with the community during the bear market. And the head of Binance, Changpeng Zhao, said that the exchange intended to conduct new mergers and acquisitions during the crypto winter, also the platform opened 2 000 additional positions.

Earlier, the head of the crypto exchange FTX US Brett Harrison named the conditions for the recovery of digital assets market. In his view, this requires clarity from US regulators, strengthening the structure of cryptocurrency futures and options and approval of spot trading of cryptocurrency ETFs.


Tatiana Darda Tatiana Darda

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