Mark Cuban, a Shark Tank investor, predicts that the crypto bear market will continue, with certain digital assets collapsing.
According to a new interview with Fortune, a collection of crypto assets backed by ‘cheap’ money will eventually go bankrupt.
“In stocks and crypto, you will see companies that were sustained by cheap, easy money – but didn’t have valid business prospects – will disappear. Like [Warren] Buffett says, ‘When the tide goes out, you get to see who is swimming naked.’”
Despite the current market conditions, Cuban believes that very inventive crypto businesses and stocks will succeed.
“If rates go up, it will struggle till it’s priced in. The exception, as with stocks, is for new, game-changing applications…
Disruptive applications and technology released during a bear market, whether stocks or crypto or any business, will always find a market and succeed.”
Because crypto assets are associated with stocks, according to the billionaire, interest rate hikes by the US Federal Reserve might cause both investment classes to struggle.
Cuban previously stated that bear markets are good for the progress of cryptocurrencies because they encourage developers to innovate and tackle real-world problems using digital assets.
Source: DailyHodl