Solana co-founder tells how long the cryptocurrency decline will last

Several months have passed since the Terra project collapse in May, which led to a serious correction of the entire cryptocurrency market. The prices of the vast majority of digital assets are still either falling or moving horizontally without any noticeable activity on the part of traders. This is all influenced by both the global recession and the war in Ukraine.

In this regard, any forecasts may differ dramatically depending on the speaker’s position. For example, Bloomberg analyst Mike McGlone believes that bitcoin has room for further growth by the end of this year, as the cryptocurrency has shown remarkable stability amid the collapse of other markets.

Anatoliy Yakovenko, co-founder of the Solana blockchain, also expressed his opinion on this. According to Yakovenko, one of the main problems for investors is the continued increase in the US Federal Reserve 's prime rate, which has been raised by 75 basis points over the past three times, which has not happened in decades. As a result, loans and money itself are becoming more expensive, and investors' appetite for risk is decreasing:

«If we take into account macroeconomic indicators, this tough Fed rate hike will continue for another 12−18 months. But it will eventually end. And it will be the same as during the last bear market. A lot of the development teams that built and focused on product-market fit and really tried to create something unique back then-many of them succeeded, I think, very well.»