The cryptocurrency market has been on a downturn since the beginning of the week. Earlier this week, the global cryptocurrency market cap dropped below $900 billion. However, some crypto experts have insisted that the market is still bullish and will continue notable gains in certain areas. The co-founder of Polygon, Sandeep Nailwal, has said that the Web3 space is still bullish, adding that the current downtrend has not affected the fundamentals of the Web3 space.
Web3 is still bullish
Nailwal released a Twitter thread saying that Web3 was still bullish despite the market recession. “Long-term Web3 remains mega-mega bullish, so newbies keep learning and builders keep building,” the announcement said.
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The Polygon co-founder also said that the current bear market could last, adding that the uncertainty would be cleared if the US Federal Reserve outlined plans to overcome the recession. “There is a lot of dry powder sitting on the sidelines to bring in aggressive bull rallies,” Nailwal added.
However, any positive moves from the Federal Reserve remained uncertain because of the rising inflation levels and the stagnation across financial markets. Venture capitals are still engaging with the cryptocurrency sector. However, Nailwal said that these firms were being cautious in the projects to fund, adding that the majority would engage with liquid markets.
He also added that the market would create a bottom if the inflation levels reached a peak between three to six months. When the Fed increases the interest rates to high levels, it will normalize the market, and the stage for a bull run could be set.
Crypto downturn affects crypto jobs
The rising inflation levels have affected all asset classes. The global stock market has dumped massively as investors dump risky assets. Since the beginning of the year, trillions of dollars have been wiped out of the market. The rising volatility has affected both long and short positions.
The weakening market has stressed out some of the leading cryptocurrency platforms. Firms such as Coinbase, Gemini, BlockFi, and CryptoCom have trimmed their workforces because of the changes in the macroeconomic environment. Some firms seem to be struggling to keep up with the market bears.
Binance has distinguished itself during the current bear market and is among the few firms still hiring new staff. The exchange’s CEO, Changpeng Zhao, said that the company had a “war-chest” that would aid the platform despite the falling crypto prices. He also added that the crypto winter presented the ideal opportunity to hire new personnel.
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