The cryptocurrency market has been in the doldrums, and the correction has polarized people over whether a bottom has been reached.

What Happened: Hedge fund manager Whitney Tilson said on Thursday that it was time to get out of cryptocurrencies and wait to "rejoin the game." 

The analyst said with such a speculative asset, investors would have to price in momentum, given that it is impossible to value cryptocurrencies.

The price momentum, however, is now completely in the wrong direction, Tilson said.

Secondly, the analyst noted that macroeconomic conditions have worsened, weighed down by supply chain bottlenecks and the Ukraine war that has sent inflation soaring to a 40-year high. 

To contain inflation, the Fed has promptly embarked on a rate-hike spree, triggering a stock market collapse and full-blown crash among all speculative assets, Tilson said.

"Many buyers then probably figured the sell-off was overdone.. but it was just getting started," Tilson said, pointing out that the index lost 43% over the next six months.

The odds of a very bad outcome have clearly risen quite a bit, he added.