By
Chimamanda U. Martha
April 26th, 2024
The recent market downturn has seen the crypto market move in tandem with stocks.
Ripple CEO Brad Garlinghouse has taken to Twitter to encourage new crypto investors to exercise patience amid a worsening bearish market. The executive noted that the market situation was nothing new and that it would soon pass away. Having seen many bullish runs over the years, Garlinghouse is confident that the market will rebound.
The cryptocurrency industry has seen over 60% of its value wiped out by the market. From a peak market capitalization of about $3 trillion, the total value is now less than $1 trillion. The crypto bear market also dragged down the floor prices of NFTs.
Garlinghouse noted the market may shrink in the near term but crypto would succeed in the future.
“I and many others have every ounce of confidence that crypto will succeed in the future as an integral part of our global financial systems,” Garlinghouse added.
Ripple CEO Shares XRP Strategy for Surviving Bear Markets
Despite the market downturn, XRP has stayed strong. Garlinghouse has stated that Ripple has been able to weather the storm by hiring highly experienced executives who have experienced several market downturns. He also noted that their product has real-life utility and focuses on the long term.
Again, Garlinghouse noted that the firm has always been transparent with its users, and attentive to various market events. He said, “As a holder of XRP, we believe communication & transparency (including our Quarterly Markets Reports) are keys to being a responsible stakeholder.”
Consequently, Ripple believes that despite the bear market, it will continue to grow its employees. Comparatively, multiple exchanges have taken to downsizing to weather the crypto winter. Most recently, BlockFi announced that they were relieving 20% of their workforce.
Bearish Market Caused by Federal Reserve
The recent market downturn has seen the crypto market move in tandem with stocks. There are indications that this is because the Federal Reserve attempts to control inflation by raising interest rates.
Before now, Bitcoin has thrived, partly because of low-interest rates. With the US Federal Reserve ready to implement a 75-basis hike by Wednesday, many expect Bitcoin to take a beating. Already, the coin is hovering around the $20,000 level. However, crypto stalwarts like Mike Novogratz are confident that cryptocurrencies have reached their fall limit and would begin to rise in earnest.