Has the Crypto Market Hit Rock Bottom? Here’s What Next For Bitcoin and Major Altcoins
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The crypto market lost more than $2 trillion in valuation during the 2022 downturn. The total crypto market capitalization dropped below $800 billion but has since topped $1.2 trillion following the relief rally that began in January.
Whale crypto traders and increased adoption of the Web3 market by institutional investors have significantly bolstered the digital asset industry. Moreover, investors have more confidence in Bitcoin and other digital assets following the recent banking crisis that magnified possible challenges the traditional financial institutions are facing.
Crypto Macro Outlook
In a recent YouTube interview with Scott Melker, the host to The Wolf Of All Streets podcast, Mike McGlone – a senior macro strategist at Bloomberg – and Dave Weisberger, CEO of CoinRoutes, discussed the macro-financial outlook that affects Bitcoin and other digital assets in price action and adoption. To begin with, the three acknowledged that next week’s Federal Funds Rate will have no outrageous effect on Bitcoin and the rest of the crypto market.
Moreover, the Fed’s balance sheet has been shrinking after the recent expansion caused by the banking crisis. Nevertheless, the analyst noted that Bitcoin and other digital assets stand a solid chance of adopting amid global inflation led by the second largest economy in South America, Argentina, which saw its inflation soar above 100 percent.
Notably, the IMF and Fernandez’s administration in 2022 reached a new $44 billion deal but was negotiated with several conditions including crypto de-risking. As a result, the analysts highlighted that Bitcoin’s market is bullish in the long term, although a possible recession could shrink the prices before the next halving event.
“Good news is Bitcoin had its 80 percent correct… but it doesn’t mean it can’t go back and test 20,15, 19k,” McGlone noted.
Filed under: Bitcoin - @ April 25, 2023 8:08 am