Bitcoin’s steady decline since November has erased over $600 billion in market value, and over $1 trillion has been lost from the total cryptocurrency market. With Bitcoin falling 50% below its most recent all-time high last week, it’s anyone’s guess as to when we can expect a market recovery.
Amidst such volatility, investors are wondering how best to allocate their investments. Tatiana Koffman, a leading advisor in crypto, advises that investors should remain impervious to cyclical volatility. She allocates her investments to a select few categories, irrespective of market conditions.
The UCLA guest lecturer also asserts that Bitcoin is one of the most undervalued assets globally and is on track to be a $1M asset within five years. This is not to say that its value will never fall again. But Koffman argues that there is a lot of investment still to come for Bitcoin – from corporate treasuries to institutional funds and even governments.
Modern financial infrastructure is another category that Koffman supports. Wallets and exchange platforms are the businesses and applications that are most likely to withstand business-cycle changes – and, therefore, provide the most reliable long-term ROI.
Finally, Koffman believes that liquid crypto assets are overvalued, even at current prices.
“Prices move on market sentiment,” she reasons. “If an investor understands that, they can utilize these assets by taking short-term positions on strong-narrative tokens during dips – just as long as they get out on time.”
Tatiana Koffman is a recognized thought leader, investor, and writer in finance and technology. She has been featured in Forbes, Economist, Business Insider, and TechCrunch, while her work has been quoted by academic institutions such as UCLA, Oxford, Sorbonne University, and Michigan Law Review.
Markets like these tend to scare off even the hardiest of investors – and even the experts warn against buying into speculative assets. But it seems that more growth is on the horizon for Bitcoin, and only those willing to wait out the storm will reap the rewards.