Ex-Coinbase Board Member Analyzes Crypto Winter

A former Coinbase board member has given his prediction on how and when the market downturn will end and also advised investors on how to emerge stronger. 

2022 Bear Market To Continue

Tom Loverro, who served on the board of the global cryptocurrency exchange Coinbase till 2021, posted a detailed Twitter thread giving valuable insights into the ongoing crypto winter and how the market is going to get through it. June 2022 saw Bitcoin drop below the $20K mark, with many experts predicting that it could sink lower and drop to the $12K mark. 

Even Loverro agrees that 2022 will continue to be a difficult year for crypto, and the market will fall even lower than it is currently. He predicts that the situation will continue well into 2023, with things looking up only in the second half. According to Loverro, since it took the market 12 months to drop from “crypto peak to floor,” it will take roughly the same time for it to recover. 

Crypto Rock Bottom 

Loverro calls out the ‘recency bias’ that VC firms and crypto investors suffer from, as they have been expecting an immediate rebound. A lot of these investors are comparing the current situation with the 2020 Covid black swan. Loverro pointed out that the current market situation is a result of rising interest rates; therefore, the market will not recover until the rates stabilize. 

In fact, according to him, the market still has not bottomed out. The FUD in the industry is still keeping investors engaged in the ups and downs. Retail investors are still seeking novelty and momentum from the market but in vain. However, the true rock bottom will happen later this year, when crypto is no longer the talk of the town. That is when the casual investors or the “tourists” would have left the market, and indifference would set in. 

Advice To Investors

Loverro also discusses how best to take advantage of the market situation. He believes that the bear market is the time for innovating and building up market share. The innovations should focus on creating new applications and use cases for these digital assets, particularly in retail. He also believes that the sector should focus on lowering taxation and developing infrastructure layers. Loverro strongly advised investors to power through the next 30-36 months of crypto winter to emerge into a market that is bigger than ever. 

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.