Shark Tank investor Mark Cuban says the crypto bear market will continue, and some digital assets will collapse.
In a new interview with Fortune, the business magnate says a group of crypto assets held up by ‘cheap’ money will eventually go defunct.
“In stocks and crypto, you will see companies that were sustained by cheap, easy money – but didn’t have valid business prospects – will disappear. Like [Warren] Buffett says, ‘When the tide goes out, you get to see who is swimming naked.’”
Despite rough market conditions, Cuban says highly innovative crypto projects as well as stocks will still break through.
“If rates go up, it will struggle till it’s priced in. The exception, as with stocks, is for new, game-changing applications…
Disruptive applications and technology released during a bear market, whether stocks or crypto or any business, will always find a market and succeed.”
The billionaire says that since crypto assets tend to be correlated with stocks, interest rate hikes by the U.S. Federal Reserve could see both investment classes struggle.
Previously, Cuban said bear markets are beneficial to the evolution of cryptocurrencies as developers are urged to innovate and solve real-world problems using digital assets.