Crypto Analyst Pins BTC Price Rise to 2019 – Cryptopolitan
A crypto market analyst at K33 Research sees parallels between bitcoin’s recent rally from the 2022 lows and the price pattern from 2018 to 2019. The analyst stated in an interview that the current drawdown and recovery phase is strikingly similar to that of 2019 in terms of duration and price movement. Analysts predict that by the end of the year, BTC could reach $45,000.
BTC was trading at approximately $29,212 at the time of writing, down 2.4%, although it is up approx. 80% in 2023. The rise follows a year of turmoil, in which many significant companies declared bankruptcy, causing risk-averse investors to flee DeFi markets.
Crypto Analyst Dismisses Current BTC Price Movement
According to on-chain crypto market data, investors witnessed a lot of forced and cautious selling in the latter half of 2022. This has led to individuals being under-exposed and enticed many individuals to short (crypto) while being wary of adding exposure. This creates a dynamic where bitcoin rises as a result of short squeezes.
Despite recent price gains, the fintech analyst notes that negative to neutral derivatives sales are further indications of investor caution. The market’s relatively low liquidity remained a potential weight on future pricing, although this sentiment could change.
However, the industry-wide crisis of 2022, which resulted in the bankruptcy of several significant companies, including crypto hedge fund Three Arrows Capital, has already benefited the markets by weeding out bad actors. It has removed many of these bad actors from the market. Consequently, the entire market is currently in a more resilient phase where it can sustain higher interest rates for longer.
The industry has gained knowledge. Nevertheless, comparable crises are inevitable in the future. For now, however, this type of hazard appears to have been eliminated from the market. Consequently, the market feels significantly safer at the moment.
Crypto takes a backseat as AI accelerates
Artificial intelligence is the shiniest new thing venture capitalists are pouring money into, leaving once-popular cryptocurrency projects struggling to secure funding. According to Evan Cheng, co-founder and CEO of Mysten Labs, this shift is due to the ability of AI products and applications to serve a wider audience. In contrast, the DeFi industry continues to concentrate on itself.
Multidisciplinary venture capitalists are increasingly turning their attention to AI investments, driven by the technology’s proven value to consumers […] ChatGPT came out, and [developers] builds products and applications for consumers and for developers – widespread, large-scale use cases are immediately possible. […] In crypto, the industry has built products for crypto people.
Evan Cheng
BTC Miners escape the bear market
After an icy and arduous crypto winter, Bitcoin miners are finally basking in the spring sun. Companies pumping new bitcoin into circulation have been given a lifeline by the cryptocurrency’s rally above $30,000 this year, which has combined with falling electricity prices to boost profitability.
According to data from Blockchain.com, the 30-day average of mining revenue has increased to $27.34 million per day, the highest level since last June. According to market analysts, this scenario played out in 2019 as the bull market accelerated.
This is a reprieve for miners who struggled to service large debt loads for most of the second half of 2022, when earnings fell between $15 million and $21 million. However, they are still a significant distance from the peak of $61.2 million reached in November 2021.
