CoinShares Predicts a Protracted Crypto Winter for Bitcoin
CoinShares Strategy Director Meltem Demirors Predicts a longer Winter for bitcoin and other crypto assets than expected
According to her, the cryptocurrency market is still far from turning around, and current macroeconomic indicators can drive bitcoin into a prolonged bear pit:
"According to CoinShares, the market will remain at current levels for some time. There are no catalysts for short-term growth. We will still see bitcoin in a recession. In addition, we should expect increasing problems for the shares of technology companies and other cryptocurrencies"
Demirors believes that, despite the loss of more than half of the capitalization by the crypto market, there are still factors that can cause the final capitulation before the bottom is formed by bitcoin:
"There have already been many liquidations that have had a significant impact on the market. We are talking about $10 - $30 billion that disappeared overnight, but we have not yet seen the full impact of these events, since a significant number of companies in the crypto industry are not public."
Meanwhile, the dollar index (DXY) has reached a 20-year high due to rising inflation, which is historically a bad sign for bitcoin. But Bloomberg strategist Mike McGlone believes that the Fed may face prolonged deflation, so it will have to limit the growth of DXY, which will allow bitcoin to start an uptrend. According to him, the behavior of the Bloomberg Galaxy Crypto index resembles the approach to the bottom of 2018, signaling a possible reversal of bitcoin:
Yu"BTC could launch one of the most significant bull markets in history. We believe that the adoption of bitcoin will continue to grow"
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