Analysts voice forecasts for the state of the digital asset industry
The price of the main crypto coin has fallen by 70% from its all-time high of $69,000 at the end of 2021. And in March of this year, the bitcoin rate reached a maximum of $47,500, but since then it has dropped to the current level of around $20,000. Experts voiced the reasons for the fall of the crypto market and pointed to the prerequisites for a trend reversal.
Chen Limin, chief financial officer of ICB Fund, believes that at the moment few people are ready to take risks due to the rise in funding costs that occurred after the Fed’s rate hike. He does not rule out the possibility of a continuation of the bearish trend.
Limin predicts that the growth of the crypto market capitalization can only begin in 2024, and before that the industry will undergo “self-purification of the most unstable projects.” According to the expert, BTC quotes are “looking towards” $10,000, but lower levels are not excluded.
At the same time, the $20,000 mark was not easy to overcome, but everything points to the victory of sellers over buyers in the near future. For a new rally, it is necessary that large investors become interested in the digital asset industry again. This will happen when the US regulator is ready to stimulate market activity, Limin believes.
In the near future, a statistical report on consumer prices and producer prices in the United States is expected. According to AMarkets representative Artem Deev, price growth is likely to become a prerequisite for a fall in the stock market and the digital currency market.
And EXMO.me analyst Oleg Fedishin pointed to a large outflow of the main crypto coin from trading platforms, which indicates that BTC investors are moving to long-term storage. According to the expert, this is one of the signs that the period of decline is coming to an end.
“You can even consider this a certain leading signal that indicates a quick reversal. But it is possible to predict the bitcoin rate only in a general context. The bottom is not a specific point on the chart. The bottom is a process. And in the global picture, the formation of this bottom may take weeks or months. But the fact that we have already approached it is a fact,” concluded the analyst.
Do you agree with such positive forecasts of the state of the crypto market?