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The expert warned about the risks of the crypto bubble

Expert Mokrov: the crypto market is divided into trend and speculation
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Photo: Global Look Press/Jaap Arriens/ZUMAPRESS.com
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It is important for investors to distinguish stable market trends from financial bubbles, since even promising technologies do not protect against losses. Alexey Mokrov, an expert on financial markets and founder of CryptoBotPro LLC, told Izvestia about this on April 25.

"A steady trend is changing people's behavior and infrastructure, a bubble is only changing the price," he said.

According to Mokrov, there are two realities in the crypto market at the same time — technological and speculative. The first is related to the development of blockchain technologies, tokenization of assets, and the introduction of digital currencies, including the digital ruble. The second is with high—risk tools such as memecoins and projects without a transparent model.

Mokrov noted that a steady trend can be distinguished by the availability of practical applications, business participation and the formation of infrastructure.

"The bubble works differently. The price begins to live separately from the real utility. There is a growing excitement in the public field, the number of self-proclaimed experts is growing, and the main argument boils down to haste: it is important to get in before the next jump. In such circumstances, rational analysis quickly gives way to emotion," he said.

The expert added that investors should pay attention to jurisdiction, licenses, transparency of operations and the participation of large financial institutions. In his opinion, the market regularly goes through stages of reassessment, and the key issue for an investor is not the prospects of an idea, but the entry price and the level of risks taken.

Alexander Baryshnikov, the manager of the Mining fund at Record Capital Management Company, said on April 20 that the current technical picture for bitcoin remains tense. The asset failed to gain a foothold above the $80,000 level, remaining within the ascending channel. In the event of a breakdown of key support in the region of $ 73.8–74 thousand, a further decline to around $70.8 thousand is possible.

Переведено сервисом «Яндекс Переводчик»

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