Is Bitcoin going to heal? The past month or two have seen more than their fair share of crypto FUD, however, the bear market may end sooner than expected.
Crypto markets have been trending lower for more than a year now, and a long period of low volatility may be starting, an analyst says. However, others feel that a quick turnaround is possible once the economic picture improves.
Dec. On January 18, crypto analyst “Cold Blooded Shiller” compared the current market to that of the last bear cycle in 2018/19. After a period of rapid decline, the market has been trading sideways with little change for about 18 months. The analyst suggested that that could happen again and the crypto winter extends until 2024 if the news is sound.
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Quick Recovery?
However, there are other theories that predict a quick recovery in the crypto market. DeFi analyst ‘Kamikaz_ETH’ said that comparing the market to those before ‘DeFi Summer’ is pointless. “There won’t be a 1-2 year crypto freeze – a few months max depending on how fast the big meltdown is meaningless.”
They added that every traditional financial institution is willing to offer crypto services, and crypto now has many real use cases, many of which are based on Ethereum.
They added, “2020/2021 is not the third round of crypto – it’s the first round of crypto based on real projects.” On a side note, the biggest factor affecting the crypto market is the macro economic situation. Retail investors won’t be able to come back until they have the money to do so.
This is unlikely to happen until inflation is controlled and energy, wages and rents return to reasonable levels.
Most of the next year will be a continuation of the current market movement, without a real break. The last move seems to have happened, with the market falling 73% from peak to peak, but that doesn’t mean there won’t be another panic sale.
Crypto Market Outlook
Markets are stable on weekends with little activity. Total capital was $840 billion in Monday morning’s Asian trading session – close to the bottom of the cycle last month.
BTC fell to $16,663, while Ethereum was in the red at $1,177 at the time of writing, according to CoinGecko.
