Jonathan Boyar, managing director at Boyar Asset Management in New York and principal advisor to the MAPFRE AM Forgotten US Value Fund, has commented on the recent cryptocurrency market crash and his views on the sector more broadly.
Earlier this week, several cryptocurrencies plummeted to new lows. Bitcoin has fallen by approximately 70% from its all-time high in November, while Ethereum is down by 78% from its all-time high.
The crash is due to several factors, including the popular crypto lending platform Celsius freezing all its withdrawals from users and the latest consumer price inflation figure/rising global cost of living causing unprecedented sell-offs.
Boyar has been urging investors for some time to avoid cryptocurrencies due to their extreme volatility, regulation issues, and unpredictability.
He said: "Investing in Crypto is a case study on why you need to know the true value of what you invest in.
"Crypto currencies have no underlying worth and their prices are driven solely by sentiment. Buying them is pure speculation and not investing. Unfortunately, we are seeing the results of that speculation."
Previously, in December 2021, Boyar warned: "Many of those who invest in crypto now will lose everything".
By Mark Battersby