Despite the recent market crash that resulted in popular cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) dipping by more than 35%, famous market forecaster, Jim Bianco believes the dip will pay patient investors off in the long term.
Bianco, the president of Bianco Research, told CNBC in an interview that most of the cryptocurrencies, especially Ethereum, that suffered heavy correction last week would increase in value.
However, Bianco believes that for investors to record major profits for their investments, they would need to be able to withstand a much stronger market correction than what was experienced last week, when the value of all cryptocurrencies plummeted massively.
“But you’re going to have to stomach through much more of what we saw in the last week coming in the next several months or year or so,” Bianco said.
Crypto Prices Will Soar After Early Adoption
The Bianco Research president noted that speculative betting from traders in recent times is putting the asset class on a bullish path.
According to Bianco, cryptocurrencies can experience a further dip by more than 50% at any point in time because the technology is still new.
However, when cryptos have gone past the stage of early adoption, it would contribute to rebranding the global financial system, and would also play a pivotal role in real-world economies.
It is at this point that the prices of various cryptos will grow tremendously, CNBC reported.
The Bianco president continued that investors would only need to pay the ultimate price for crypto volatility, for the time being, adding that as more people adopt crypto, their risks will reduce.
Bianco’s Crypto Investment Decisions
Bianco has been active in the crypto space since 2017. Over the years, he has stocked his portfolio with various cryptocurrencies except for Bitcoin.
Per the report, despite owning several coins and tokens, Bianco has resisted the urge to actively trade them, as he only buys and sells them once a year.
Just yesterday, the veteran billionaire investor, Carl Icahn said he reckons that many of the top cryptocurrencies are here to stay.