What will happen to the cryptocurrency market next? Forecasts
The digital currency market will not fall further, Raul Pal, CEO of Real Vision TV, is sure. In his opinion, amid a slowdown in economic growth, the industry will show new highs.
The crypto expert noted that recent events in the world have become a prerequisite for the negative mood of investors, but the crypto markets were able to maintain stability. He stated that stability indicates that the digital asset market has reached the bottom.
“The balance of probabilities is such that we have reached a minimum as it was last year. We’ve retested it and I think we’ve already bottomed out. War, inflation at 8.5%, higher interest rates, rejection of the Chinese scenario — so many things have happened, and we have not reached a new low. This is usually a signal that the market has found its bottom,” says the economist.
Pal believes that a time of stagnation in the economy may be the spark that will provoke further bullish growth. He pointed out that in this case, there could be a long-term growth of crypto assets, which are usually more efficient against the backdrop of slow economic growth.
“Digital assets tend to perform well in such an environment, which is why Cathie Wood’s ARKK is now investing in cryptocurrencies for the long term. So, this is what we are looking for as a spark, a restructuring, so that investors are less afraid of inflation and more of economic growth,” the analyst said.
According to him, the previous four-year period “is already at the limit and does not have such a strong impact on the market.”
“For example, ETH 2.0 will create potentially different dynamics, so I think the cycles have changed and that these very volatile trends will become less volatile over time. We saw this with the example of Amazon — in its early days, the same thing happened as with cryptocurrency now. Now 300 million people are using cryptocurrencies, and volatility is gradually decreasing,” Pal predicted.
But the CEO of Celsius Network, Alex Mashinsky, believes that already this year BTC and ETH can update all-time highs due to the transfer of money from the stock market to digital assets. At the same time, bitcoin is able to overcome the mark of $100,000.
According to the expert, the main cryptocurrency has acquired the features of a protective asset, so he redistributes his own savings from securities to BTC.
“All assets are inflated — real estate, bonds, stocks — it doesn’t matter, you can’t hide money anywhere! Even if you want to buy commodities, prices for most of them are close to records. Where are you going to “park” your capital? The best way is to transfer to an industry that is not related to the US dollar — to bitcoin,” he explained.
Do you agree with the experts?
