If This Happens, Cryptocurrency Winter May End!

If Bitcoin stabilizes in the next two weeks, the protracted cryptocurrency bear market, also known as the crypto winter, could end as quickly as it started.

According to Edward Moya, the cryptocurrency market is ready for a comeback

This prediction came from Oanda’s senior market analyst, Edward Moya. According to Moya, “Wall Street is enjoying an aura of positive risk-taking, which is good news for cryptos.” The expert also says that the crypto market is starting to look “attractive as the economy looks a little better as Fed tightening expectations ease.”

Moya is referring to the surging stock market and the general calming of macroeconomic fears among investors. Often times, the rise in stocks also raises cryptocurrencies. Expert investors are starting to feel more optimistic about the economy, inflation and rising interest rates, which is a positive sign for risky assets, she says. Typically, the more confident investors feel about the stock market and the broader macroeconomic environment, the more risk they are willing to take.

Cryptocurrencies ahead of the Fed meeting

Bitcoin hit a one-month high on Wednesday, breaking above $24,000. AmkNews.comAs you follow, Ethereum has gained more than 50% in the last few days. The leading altcoin traded above $1,600 on Wednesday and then today.

If This Happens, Cryptocurrency Winter May End!

For the past few months, many crypto experts have been waiting for one last big drop for the crypto market. Others are aiming for a bottom between $10,000 and $14,000 for Bitcoin. While that could still happen, Moya says if he buys more institutions in the coming weeks, this could allow Bitcoin to bottom out since “market positioning has become extreme.”

What’s next for the cryptocurrency market, how should investors react?

Until a month ago, cryptocurrencies were in the midst of one of the worst market crashes it has ever experienced. Bitcoin and Ethereum have fallen more than 70% since the peak of last year’s bull run. Many crypto companies, notably hedge fund Three Arrows Capital and Celsius, have declared bankruptcies. Meanwhile, its total market capitalization fell below $1 trillion. Thus, it was a significant drop from a few months ago when it was more than $3 trillion.

TOTAL 2022 07 24 18 48 56

But Marcus Sotiriou, market analyst at crypto exchange GlobalBlock, says investors hope this crash is nearing its end. Crypto prices are skyrocketing as investors begin to feel more bullish, thanks in part to the recent rally in stock markets in the US, Europe, and Asia. Cryptocurrencies, especially Bitcoin, have been following the exchanges closely since the beginning of the year. Sotiriou comments on the current bear market:

As the market begins to react positively to negative news, this is a sign that it may be in a local bottom for now, as fear may have caused the news to be priced in.

“Rally for Ethereum will start at this level”

Despite the positive momentum over the past few days, the crypto market is still suffering. Both Bitcoin and Ethereum have dropped more than 50% this year. Bitcoin recorded its worst quarterly loss between April and June. Crypto expert and educator Wendy commented on what levels Ethereum will rally buyers at:

We are in a fully developed bear market, not in a bear cycle. We are currently trading at $1,500 for Ethereum and seeing some positive price action for me to be super doesn’t mean we are not clear. Bullish on Ethereum, I should see us break above $2,248.

Ethereum at Those Numbers in December

So what does the latest cryptocurrency rally mean for investors?

It shouldn’t significantly change your crypto investments or how you invest in crypto if you’ve been into it for a long time. Given crypto’s history of volatility, this increase does not guarantee a long-term return. Crypto prices are as likely to fall back as they continue to climb.

The future of cryptocurrency certainly includes much more volatility. For this reason, experts recommend not dedicating more than 5% of your investment portfolio to crypto. It makes sense to invest only in what you are willing to lose.

Disclaimer: The articles and articles on AmkNews do not constitute investment advice. AmkNews.com does not recommend buying or selling any cryptocurrencies or digital assets, nor is AmkNews an investment advisor. Therefore, AmkNews and the authors of the articles on the site cannot be held responsible for your investment decisions. Readers should do their own research before taking any action regarding the company, assets or services in this article.

Warning: Citing the news content of AmkNews and quoting by giving a link is subject to the permission of AmkNews. No content on the site can be copied, reproduced or published on any platform without permission. Legal action will be taken against those who use the code, design, text, graphics and all other content of AmkNews in violation of intellectual property law and relevant legislation.

Larry Brown

I graduated from Yale University, Department of Television. I have been a professional news writer for 3 years. I am continuing my career here by establishing amknews.com site 3 months ago.