Mark Yusko of Morgan Creek Capital Management has identified four crypto-assets that he believes can endure a market slump. Yusko claims that the native currencies of smart contract-enabled blockchains Solana (SOL), Avalanche (AVAX), Cosmos (ATOM), and Polkadot (DOT) are among the crypto assets capable of surviving a down market. In the instance of Solana, Morgan Creek’s creator calls the blockchain’s seventh-largest market cap an excellent protocol. “There’s probably still some potential volatility in the price ahead. But long term, I think it’s a great protocol.” According to Yusko, Cryptocurrencies will be in a bear market for around a year until the next Bitcoin halving event sets off a bull cycle. “What you’re seeing is crypto is definitely in a bear cycle. It’s going to struggle for the next 12-ish months then we’ll go back to the next bull cycle triggered by the next halving event.” The most recent Bitcoin (BTC) halving took place in May of 2020. The next one is scheduled for the first six months of 2024. According to Yusko, Bitcoin is not tied to stocks, despite the fact that it may appear to be on shorter time frames. For example, Bitcoin is down 7.77 percent year to date, compared to the Nasdaq, which has dropped 9.89 percent in the aftermath of the Federal Reserve’s intentions to raise rates. “You can’t calculate correlation over the short-term. Just the math doesn’t work. And so yes, it is true that in times of stress, all correlations go to one.” When you zoom out, the long-term correlation of Bitcoin to stocks is 0.15. It rises for a few weeks or months, but it’s still 0.15 in the long run, and it’s 0 in bonds. Correlation can have a value ranging from -1 to 1. The stronger the correlation, the higher the value, and the weaker the correlation, the lower the value.
The post Morgan Creek’s Mark Yusko: Solana, Avalanche Will Survive Crypto Winter appeared first on Cryptoknowmics-Crypto News and Media Platform.
- "
- 2020
- 7
- 77
- 9
- According
- All
- among
- around
- Assets
- atom
- Avalanche
- Bear Market
- believes
- Bitcoin
- Bitcoin halving
- Bonds
- BTC
- capital
- claims
- compared
- Cosmos
- creator
- Creek
- crypto
- crypto-assets
- cryptocurrencies
- currencies
- Despite
- Display
- Doesn’t
- down
- dropped
- Event
- example
- Federal
- First
- going
- great
- Halving
- HTTPS
- IT
- Long
- management
- mark
- Market
- Market Cap
- math
- Media
- months
- Morgan
- most
- Nasdaq
- news
- Polkadot
- price
- protocol
- raise
- ranging
- Rates
- Run
- SIX
- Six months
- smart
- So
- Solana
- Stocks
- stress
- Tied
- time
- value
- Volatility
- Work
- year
- zoom
