Analysts point to the profit from short-term crypto investments

2 min readJan 26, 2023

More than 97% of short-term bitcoin investors turned out to be profitable investments in bitcoin. As Glassnode analysts pointed out, this happened after the rise in the BTC rate to the level of $23,000.

Experts noted that such an indicator has not been recorded since the end of 2021, when the main crypto coin reached record highs. However, analysts believe that the likelihood of a fall in the value of bitcoin in the short term still remains.

“When 97.5% of new investors are at a loss during a bearish cycle, this indicates that sellers are running out of steam. Conversely, if 97.5% of short-term investors are in profit, they usually sell bitcoin and take profits. Accordingly, we can expect sales in the cryptocurrency market,” the authors of the report said.

Ark Invest key futurist Brett Winton said that in the era of artificial intelligence, digital assets could start to rise. In his opinion, achievements in the field of AI help to accelerate the development of technologies in various sectors of the economy.

“Public blockchains, cryptocurrencies and crypto assets, which are going through a bumpy period now, are going to become even more differentiated for their scarcity in an age of abundance,” Winton said.

He also noted that there are now more opportunities to realize value in the investment and public market space than just a couple of years ago. And Ark Invest CEO Cathie Wood believes that many of the technological advances of the future will turn out to be “deflationary,” albeit positive.

“This will help forecast lower inflation and spark a boom in innovation-related products and services,” she said.

According to the head of Ark Invest, there are already “all kinds of signals indicating lower inflation,” which “suggests a change in Fed policy soon.” Wood admitted that this could happen in the first half of this year.