The analysts’ view: crypto assets can outperform the traditional stock market, but today they are not yet ready for a “reversal”

According to Coinmarketcap’s public data, on July 27th the cost of the main crypto currency has risen above the $20,000 mark. Glassnode’s analytics team believe that because of Bitcoin remains in “red zone”, the current indicators may indicate that it is likely to take time to form a solid base.

Experts assume that the $20,000 level turned out to be extremely attractive for speculators and their influx happened as a result of the assets transfer from the departed holders to “new positive-minded” investors.

A significant number of long-term investors still hold BTC, which were previously bought at a higher price. This is an indicator of their insensitivity to the crypto market’ behavior.

Analysts point out to the fact, that there was also a significant speculation activity at the $30,000 and $40,000 levels. In order for the market to turn around, these assets need to move into the “held by long-term investors” category. In other words, the ownership period of the cryptocurrency must be more than 155 days.

As for the long-term forecast, BCG, Bitget and Foresight Ventures previously released several researches, which state that the potential of the crypto industry is able to surpass the securities market.

Analysts believe that the digital currency market’s development and expansion may be influenced by such factors as the institutional investors’ number growth, as well as the rapid development of Web 3.0 services and the increasing acceptance of the digital financial assets in growing economies.

Long-term predictions concerning the prospects for digital currencies remain positive. For example, according to the report for the second quarter of this year, presented by the Coinbase analytics’ team, the total activity in venture transactions in the field of crypto projects has fallen by almost 35%. But on an annualized basis, this parameter has increased by almost 70%, which indicates “sustainable growth” in the digital assets area.

So what do you think, when to expect a bullish trend in the crypto market?