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While Dogecoin Has $7 Billion Market Cap, Bear Market Is Far from Over, Says Prominent Fund Manager

Thu, 09/22/2022 - 10:40
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Gamza Khanzadaev
Michael Gayed slams Dogecoin in his statement assessing prospects of near end of bear market
While Dogecoin Has $7 Billion Market Cap, Bear Market Is Far from Over, Says Prominent Fund Manager
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Renowned financial market expert and portfolio manager Michael Gayed said that as long as Dogecoin, as an example of a worthless asset in his view, has a market capitalization of $7 billion, the collapse of financial markets is far from over.

Referring to the statements of the expert on the same day, an opinion can be understood, according to which the bearish trend on the stock market, and thus also on the closely correlated crypto market, will end when the collapse of the real estate market is over.

That said, the situation for U.S. housing is extremely ambiguous, with the affordability of existing homes falling at the same time as sales of existing homes have historically fallen.

Crypto market tied to U.S. economy - unfortunately

Thus, in Gayed's view, the markets are far from over, and there is no immediate solution. The expert's opinion refers to the well-known principle that if people as far away from investments as possible are interested in them, smart investors should leave the market.

This is indirectly confirmed by yesterday's Fed rate meeting. Despite the expected decision to raise the indicator by 0.75%, the crypto market reacted with a sharp drop. However, the main focus was on the Fed chief's speech, in which he announced a rate hike to a restrictive level, above neutral, reflecting the regulator's tough and extremely hawkish view on measures to curb unyielding inflation.

As long as Dogecoin is worth $7 billion in the near-recessionary state of the economy, do not expect positivity or a return to the bull market.

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About the author

Financial analyst, trader and crypto enthusiast.

Gamza graduated with a degree in finance and credit with a specialization in securities and financial derivatives. He then also completed a master's program in banking and asset management.

He wants to have a hand in covering economic and fintech topics, as well as educate more people about cryptocurrencies and blockchain.