On January 26, the Federal Reserve signaled that they were on track to raise interest rates in March, given that inflation has been hitting new highs. With central banks leaving rates unchanged for almost two years, and 80% of all US dollars in existence being printed in the last 22 months, it was only a matter of time until the market took a wild turn.
To get some advice on how these events should affect our investment strategies, we sat down with crypto investor Tatiana Koffman for some insights.
Firstly, she is a strong advocate for Bitcoin as one of the most underestimated assets in the world today. While it would be unreasonable to claim that Bitcoin’s most recent $35,000 drop will be its last (or most dramatic), Koffman insists that there is uninvested capital left to inject into the world’s largest cryptocurrency. And with Rio de Janeiro’s recent adoption of Bitcoin, following closely in El Salvador’s footsteps, she may be onto something.
The globally recognized crypto advisor insists that all other projects are overvalued, even at the current basement prices. The market is still speculative, and Koffman urges investors to buy into the projects that align with their portfolio growth – not the “religion of crypto.”
“I actively seek out early-stage deals in companies building financial infrastructure that is likely to withstand business-cycle changes. This includes crypto exchanges for making trades, lending platforms, bridges for transferring funds across blockchains, wallets for storing crypto assets, and L1/L2 protocols,” says Koffman.
Koffman is a Forbes Money & Markets columnist and invests in digital assets and equities through her family office, the Koffman Group. She has worked with Grammy-award-winning celebrities, heading their VC investments, and is now a guest lecturer at UCLA.
With so much post-pandemic economic stimulation, experts say that you shouldn’t read into the hype. Speculative markets will always come with risks. The best thing you can do is make your investments and then stop looking at them. And remember – not all crypto is created equal.