When Will the Crypto Market Bottom Out? Analysts Weigh In

When Will Crypto Finally End Its Own Destruction?

When Will the Crypto Market Bottom Out? Analysts Weigh In

What needs to happen for the crypto market to finally bottom out?
When Will Crypto Finally End Its Own Destruction?
This is a question that is ringing in the ears and minds of analysts and industry heads everywhere, and the sentiment is that there needs to be a few things. The first is improvement in macroeconomic factors. Things like inflation need to subside, and the economy and the stock market also need to show signs of fixing themselves fast.
Analysts also say that there needs to be specific trading patterns in play if the crypto space is going to get any better. Lastly, the purge we’re witnessing as of late needs to ensure that all bad actors and weak crypto businesses leave the fray permanently. These entities, they stated, are bringing the space down completely and preventing it from reaching an appropriate mainstream level.
Over the past six months, the crypto space has been suffering like it never has before. the digital currency arena has lost more than $2 trillion in valuation, while assets like bitcoin – the world’s number one digital currency by market cap – has lost about 70 percent of its value. The currency was trading at a new all-time high of approximately $68,000 per unit in November of last year, though at the time of writing, it is struggling just to maintain a $19,000 or $20,000 position.
CK Zheng – co-founder of the crypto hedge fund ZX Squared – offered his thoughts on the market, claiming:
I think if inflation is under control, the economy is under control, [then] there is no really severe recession.
Inflation in the U.S., for example, is now at a 40-year high of 9.1 percent, while firms like Bank of America have long been sounding the alarm on a recession.
Vijay Ayyar – vice president of corporate development at crypto exchange Luno – also threw his two cents into the mix, commenting:
If we see signs of this this month or even over the next few months, it will give more confidence to the market that a bottom is in across all risk assets including equities and crypto.
The Fed Can’t Raise Rates Anymore
James Butterfill – head of research at Coin Shares – said a weak economic outlook in the future could stop the Fed from hiking rates, which could ultimately lead to bitcoin and other forms of crypto recovering in the coming months. He stated:
A turn around in Fed policy and the consequent peaking of the DXY [dollar index] would also help define a true floor. We believe this is likely to happen at the Jackson Hole meeting at the end of the summer.
The crypto space has also been marred by several digital currency firms collapsing or entering bankruptcy proceedings. Some of the firms moving in this direction include Three Arrows Capital, Voyager Digital, and Celsius.

Tags: analysts, Bottom, crypto

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