Fred Wilson Advises Crypto Investors To Buy More Digital Assets, Asserts Confidence In ETH Token
Fred Wilson Advises Crypto Investors To Buy More Digital Assets
In January, Fred Wilson advised cryptocurrency investors to sell their holdings. On the contrary, the prominent Silicon Valley venture capitalist is encouraging investors to buy digital assets.
Fred argues that Bitcoin is likely to reach a bottom soon, and investors should capitalize by buying more Bitcoin. Regarding Ethereum, he said that the current hatred towards the coin makes it well-poised for a bull run in the future. Therefore, investors should consider buying ETH, albeit not in charge numbers.
2018 has turned out badly form an Ethereum perspective. Since January, the coin has plunged significantly, falling from over $1,400 to the present $130. This drop has caused the market cap value of ETH to fall from $120 billion at the beginning of the year to the current $13 billion.
Notably, most if not all digital currencies have plummeted in value throughout 2018. Bitcoin, the most popular cryptocurrency, has had its market cap drop from over $230 billion to $80 billion. Cardano (ADA) has also dropped massively, with its market cap falling below $1 million. Altcoins that were impressive during the crypto bullish run, including Qtum, Bitcoin Gold and ICON are currently deteriorating. Overall, the crypto markets have depreciated by $700 billion since the turn of the year.
Despite the extent of this year’s plunge, similar drops have been experienced within the crypto space in the past. Indeed, Bitcoin performed dismally for most of the period between 2011 and 2014. In the case of Ethereum, the performance in 2018 is the worst, beating the previous record of an 80% drop set in 2016 and 2017.
For now, it is impossible to predict how long the ongoing bearish trend will last. Regardless, Wilson believes that this is the best time to purchase digital assets.