Morgan Creek Capital Management\u2019s Mark Yusko is naming four crypto assets that he believes could withstand a market downturn relatively well.<\/p>\n
According to a Business Insider report, Yusko says<\/a> that the native tokens of smart contract-enabled blockchains Solana<\/a> (SOL), Avalanche<\/a> (AVAX), Cosmos<\/a> (ATOM) and Polkadot<\/a> (DOT) are among the crypto assets capable of surviving a bear market.<\/p>\n In the case of Solana, the Morgan Creek founder says that the seventh-largest blockchain by market cap is a \u201cgreat protocol.\u201d<\/p>\n \u201cThere\u2019s probably still some potential volatility in the price ahead. But long term, I think it\u2019s a great protocol.\u201d<\/em><\/p>\n According to Yusko, cryptocurrencies will be in a bear market for the next 12 months or so before the next Bitcoin halving event kicks off a bull cycle.<\/p>\n \u201cWhat you\u2019re seeing is crypto is definitely in a bear cycle. It\u2019s going to struggle for the next 12-ish months then we\u2019ll go back to the next bull cycle triggered by the next halving event.\u201d<\/em><\/p>\n The last Bitcoin (BTC) halving event occurred in May of 2020. The next one is expected to take place during the first six months of 2024<\/a>.<\/p>\n Yusko also says that Bitcoin is not correlated to stocks though it might appear to be so on shorter time frames. For instance, Bitcoin is down 7.77% year-to-date compared to the tech-heavy Nasdaq which has fallen 9.89% year-to-date in the wake of the Federal Reserve\u2019s intentions to hike rates.<\/p>\n \u201cYou can\u2019t calculate correlation over the short-term. Just the math doesn\u2019t work. And so yes, it is true that in times of stress, \u2018all correlations go to one.\u2019<\/em><\/p>\n Zoom out, the correlation of Bitcoin to equities is 0.15 for long periods of time. Some weeks, some months, it goes higher, but over the long term, it\u2019s still 0.15 and to bonds, it\u2019s 0.\u201d<\/em><\/p>\n Correlation can take a value of between -1 and 1. The higher the value, the stronger the correlation, and the lower the value, the weaker the correlation.<\/p>\n Check Price Action<\/a><\/span><\/em>
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