The Crypto Winter Could Be Over alt 1000x630 1 If Bitcoin's Price Does This, Crypto Winter Could Be Over

If Bitcoin’s Price Does This, Crypto Winter Could Be Over

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– Edward Moya, senior market analyst at brokerage firm Oanda, believes that if bitcoins price stabilizes over the next two weeks, the prolonged crypto bear market also known as crypto winter could end as quickly as it started.

– Moya is referring to the rising stock market in recent days and a general calming of macroeconomic fears among investors. Often, a rise in stocks will also lift cryptocurrencies.

– He says investors are beginning to feel more optimistic about the economy, inflation, and rising interest rates, which is a positive sign for risky assets.

– Bitcoin rose above $23,000 on Tuesday, hitting its highest level in more than a month. Ethereum has been up more than 40% over the last few days and was trading above $1,500 on Tuesday.

– Many crypto experts weve spoken to over the last few months have been expecting one last major plunge for the crypto market, with some targeting a bottom of anywhere between $10,000 to $14,000 for bitcoin. While that could still happen, Moya says if more institutions buy in over the coming weeks, that could allow for bitcoins bottom to have been made since market positioning became extreme.

– Less than a month ago, crypto was in the midst of one of the worst market crashes it has ever experienced. Bitcoin and ethereum were down more than 70% since the peak of last years bull run.

– But investors are holding out hope that the shakeout over the past few weeks is nearing its end, says Marcus Sotiriou, a market analyst at digital asset broker GlobalBlock. Crypto prices are pushing up as investors begin to feel more bullish toward the the crypto market, thanks in part to the recent rally in stock markets across the U.S., Europe, and Asia, he says.

– Despite the positive momentum over the last few days, the crypto market is still suffering. Both bitcoin and ethereum are down more than 50% this year, and bitcoin posted its worst quarterly loss in more than a decade between April and June.

– Wendy O. says, Were in a full-blown bear market, not a bear cycle. Just because we see some positive price action doesnt mean were out of the clear.

– So, what does the latest crypto rally mean for investors? It shouldnt significantly change your crypto investments or how you invest in crypto if youre in it for the long haul. Given the cryptos history of volatility, this increase doesnt guarantee a long-term reversal.

– Because the future of cryptocurrency is sure to include plenty more volatility, financial advisors recommend allocating no more than 5% of your investment portfolio to crypto and investing only what youre OK with losing

 

 

The Crypto Winter Could Be Over alt If Bitcoin's Price Does This, Crypto Winter Could Be Over
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