The crypto winter will end before 2022 is out
South Korean researchers say that the crypto winter will end before the fiscal year is over, but believe that the United States Federal Reservetheir attempts to strengthen the US economy may continue to affect the crypto markets in the meantime.
The survey was conducted by the domestic stock exchange Korbit and reported by Maeil Kyungjae. The exchange’s research unit predicted that a “prolonged” cryptocurrency winter – characterized by low or stagnant bitcoin (BTC) and altcoin prices – would continue for many months yet, but would eventually end before the end of the fourth quarter of the current financial year.
The researchers looked at trends from previous cryptocurrencies, and drew a parallel to the decline that began in late 2018.
Jeong Seok-moon, head of Korbit’s research unit, was quoted as saying:
“This market downturn is similar to the ‘third crypto winter’ that the markets experienced between the end of 2018 and the beginning of 2019.”
Jeong believed that the Fed’s “tighter” monetary policy had triggered a decline by the end of 2018. This decline, he said, was “in contrast to the first and second” cryptocurrencies, which were “caused by internal factors in the cryptocurrency markets.”
As such, he added, those who “predict the time of” the recovery of the encryption market would be wise to take into account predictions of “when the Fed’s monetary policy stance may change.”
Corbit thinkers expect “change” in the fourth quarter, claiming that inflation “will gradually decline” during the second quarter of the year, with further positive news from the ISM output index.
Researchers at Korbit Rival Bithumb agreed. Hanguk Kyungjae quoted Lee Mi-sun, head of Bithumb’s own research unit, as being quoted as saying that the Fed’s policy rate hike policy was likely to be short-lived. She explained that the Fed will probably start cutting interest rates again before the calendar year is out. Lee concluded:
“Bitcoin prices will bottom out in the second half of this [calendar] year, and will show signs of stabilization as the end of the year approaches. ”
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