The post Analyst Warns of Potential Crypto Bear Market Amid Key Developments appeared on BitcoinEthereumNews.com.

Jacob King, an analyst at WhaleWire, has issued a cautionary outlook for Bitcoin (BTC) and the broader cryptocurrency market, highlighting the potential for a multi-year bear market. Citing several developments, including MicroStrategy’s reduced Bitcoin purchases, El Salvador’s scaled-back Bitcoin policies, and BlackRock’s significant BTC sales, King suggests the market could be entering a prolonged downturn. Adding to these concerns is the recent stagnation in Bitcoin’s price and the lack of new Tether minting activity over the past 20 days. With the crypto market potentially aligning with broader stock market declines, King urges investors to reassess their strategies and avoid overconfidence. Key Concerns Highlighted by Jacob King 1. Reduced Institutional Buying MicroStrategy: Once a major driver of Bitcoin adoption, MicroStrategy has notably reduced its BTC acquisitions. BlackRock: The asset management giant has reportedly sold significant Bitcoin holdings, signaling a potential shift in institutional sentiment. 2. El Salvador Scaling Back Bitcoin Policies Once a prominent proponent of Bitcoin adoption, El Salvador has reduced its Bitcoin-related initiatives. This retreat may dampen global enthusiasm for Bitcoin as a tool for national financial transformation. 3. Tether Minting Stagnation Tether (USDT), a key stablecoin in the crypto ecosystem, has not minted new tokens for over 20 days. A pause in USDT supply growth often signals reduced liquidity and trading activity in the crypto market. 4. Broader Market Risks King connects the potential crypto downturn to vulnerabilities in the stock market, noting that risk assets often move in tandem. The Federal Reserve’s hawkish monetary policies could further exacerbate a market-wide pullback. Indicators of a Potential Bear Market 1. Bitcoin Price Stagnation Bitcoin has struggled to break key resistance levels, with its price showing limited upward momentum. Price stagnation amid reduced buying pressure could signal the onset of a bearish trend. 2. Declining Liquidity The lack of Tether…

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Filed under: News - @ January 4, 2025 1:22 pm