If you have cryptocurrency, this news will make you happy: The end of Crypto Winter is near, according to these experts!  - Mag Mirror

If you have cryptocurrency, this news will make you happy: The end of Crypto Winter is near, according to these experts! – Mag Mirror

If the bitcoin price stabilizes over the next two weeks, an extended bear market encryptionCurrencies – also known as cryptocurrency winters – can end as quickly as they began.

So says Edward Moya, chief market analyst at brokerage Oanda, who says, “Wall Street is benefiting from a positive risk mood, which is good news for cryptocurrencies. According to him, the cryptocurrency market is starting to look “attractive now that the economy is looking a little better” The Fed’s hawkish outlook. »

Moya points to the rally in the stock market in recent days and a general easing of macroeconomic concerns among investors. Often times, rising stocks will also lead to higher cryptocurrencies. According to him, investors are starting to be more optimistic about the economy, inflation and rising interest rates, which is a positive sign for risky assets. In general, the more confidence investors have in the stock market and the general macroeconomic environment, the more risk they are willing to take.

Bitcoin soared above $23,000 on Tuesday, reaching its highest level in more than a month. Ethereum is up more than 40% in the past few days and traded above $1,500 on Tuesday.

Many of the crypto experts we’ve spoken with over the past few months have been anticipating a final major pullback for the cryptocurrency market, with some targeting a $10,000-$14,000 limit for bitcoin. While that may happen, Moya says that if more institutions buy in the next few weeks, it could allow Bitcoin to fall as “the market situation is getting extreme.”

What is the outlook for the cryptocurrency market and how should investors react?

Less than a month ago, crypto was in the midst of one of the worst market crashes it had ever seen. Bitcoin and Ethereum prices are down more than 70% since they peaked last year. many of associationWell-known crypto firms, including hedge fund Three Arrows Capital and Celsius, have filed for bankruptcy. The industry itself has fallen below the $1 trillion mark, a significant drop from the previous few months when it was worth more than $3 trillion.

Marcos Sotiero, market analyst at digital asset broker GlobalBlock, says investors are still hopeful that the tremors of the past few weeks will end. He said cryptocurrency prices are on the rise as investors are starting to feel more optimistic about the cryptocurrency market, thanks in part to the recent rally in stock markets in the US, Europe and Asia. Read also: After a great start, LUNA 2.0 drops 80% on its first day of sale. Cryptocurrencies, especially bitcoin, have been following the stock markets closely since the beginning of the year.

“When the market begins to respond positively to negative news, this is a signal that a local bottom may be hitting at the moment, as fear may have triggered pricing in the news,” explains Mr. Sotirio.

Despite the positive momentum in recent days, the cryptocurrency market continues to struggle. Both bitcoin and ethereum are down more than 50% this year, with bitcoin posting its worst quarterly loss in more than a decade between April and June.

“We are in a complete bear market, not in a bear cycle. Just because we see positive price action doesn’t mean we are out of trouble,” says Wendy O. , coding expert and educator. We are currently trading at $1500 [pour l’ethereum]And to be very optimistic about Ethereum, we would need to break above $2,248. It’s a 50% priced pump there.”

So what does the recent cryptocurrency rally mean for investors? This should not change your crypto investments or the way you invest significantly if you are on this long-term path. Given the history of cryptocurrency volatility, this rally does not guarantee a long-term reversal. Cryptocurrency prices are as likely to fall as they should continue to rise.

Since the future of cryptocurrency will surely be marked by increased volatility, financial advisors advise that you set aside more than 5% of your cryptocurrency investment portfolio and only invest what you are prepared to lose. Always make sure your financial institution is covered – from your retirement accounts to your emergency savings – before putting extra money into a speculative asset like Bitcoin or Ethereum.

“We have a long way to go before something happens,” says O.

💎 Open a free account to invest in cryptocurrency!

CoinHouse It allows you to easily invest in crypto assets. Creating an account is free and requires only a few simple steps.

📈 Trade cryptocurrencies online in just a few clicks!

BitPanda It allows you to easily trade digital currencies online. Creating an account is fast, free and very simple.

Be vigilant and consult your financial advisor before making any investment decision. Mirror-Mag cannot be held liable for bad investments. Before using any third-party service, you should do your own research.

Thomas Estember
Latest articles by Thomas Estimbre (see everything)

Leave a Comment

Your email address will not be published. Required fields are marked *