Arca Firm CEO Thinks Crypto Winter Has Come To An End, How True Is It?
In 2018, the cryptocurrency world experienced a crypto winter where the value of assets fell below 70-95% of their original value. This period lasted from January 2018 to December 2020.
Currently, the crypto market is experiencing another chilly winter with its devastating effects felt on the top market player – Bitcoin.
Despite the adoption and market dominance enjoyed by BTC: it still felt the crippling force of the bearish market cycle. Various predictions and speculations from experts who rely on past market cycles are all over the place.
With the last crypto winter lasting almost three years: investors and traders are confused about the length of this current bearish market trend.
The crypto world is affected by the devastating effects of global actors on the political scene. The Russia-Ukraine conflict has increased pressure on cryptocurrency globally.
Igor Zakharov, CEO of DBX digital ecosystem: notes that high inflation has increased interest rates in the US. The US is the biggest promoter of crypto and a dominant force.
Shifting of BTC holdings by whales and big players
Data obtained from Coinbase Pro shows that the major institutional players have transferred large amounts of their BTC holdings. The BTC volume associated with 48,000 BTC is worth approximately $940 million.
These bitcoin assets; were removed from long-term positions with a time frame of three to five years. Surprisingly, the smaller and medium addresses have increased their BTC holdings: according to Santiment.
As of recent data, BTC addresses with holdings in the range of 0.1 to 10 BTC now hold a record 15.9% of BTC’s total circulating supply.
The BTC price has been in constant flux. With its recent price struggles around the $20,000 range noted. That has left experts wondering about the actual length of the crypto winter.
Light at the end for crypto
But amid the uncertainty, Rayne Steinberg, CEO of digital asset investment firm Arca, is quite optimistic. He expressed his thoughts that the market in general is nearing the end of this dark period. However, he pointed out that macroeconomic factors made it difficult to go into detail.
With macroeconomic factors such as inflation at center stage worldwide, Steinberg chose to water down false hopes but encouraged optimism.
Due to Bitcoin’s current correlation with the S&P 500, the BTC price has taken a beating since the general market decline. This bitcoin synchronization with the stock market may favor the bears.
Some experts’ predictions had the price of bitcoin nosediving by as much as 20% as its relationship with the S&P 500 continues. Relatively other altcoins are also experiencing the chilling effects of the dive.
Uncertainty has now taken root in the crypto world. Forecasts and past price data are speculative as the major players prepare for the storm.
Featured Image From Pixabay, Charts From Tradingview
