What’s next for cryptocurrency according to crypto gurus

Bloomberg analyst also highlighted the importance of tasks, which has repeatedly shown a remarkable relationship with bitcoin. “The conclusion is that there are somewhat stronger forces in the markets when the stock market falls at the same pace as it did in 1H,” he said.

McGlone also insisted The key role played by the Federal Reserve Which makes aggressive interest rate hikes in 2022. These developments could create headwinds for riskier assets such as cryptocurrencies and stocks by increasing the yield paid by less risky securities and making them more attractive.

“Fight fight the Fed’ has been my mantra for riskier assets since late last year,” he said, adding that “Bitcoin and cryptocurrencies were an important part of the 2021 run and therefore part of the 2022 discharge, but I see bitcoin and ethereum coming next,

What are the benefits of bitcoin

,Bitcoin on the way to becoming a global digital security In a world that runs like this and Ethereum is an important driver of the digital revolution, as proven by enabling the most traded cryptocurrency: the dollar token, McGlone said.

Bud White, co-founder and chief product officer of crypto software company Tassen, also weighed in, stating that the digital currency currently trading well below its actual value,

“I think bitcoin is not only incredibly oversold, but it’s also in a huge accumulation zone. With bitcoin every price increase, We increase both the market value and the utility value“, he indicated.

“If you look at the market value, or MVRV, of bitcoin at its fair value, we see it around one, which suggests that the market value of this asset has fallen to its true utility value,” White said. “This also tells me that the massive selling we’ve experienced in recent months due to Terra, Three Arrows and LOT has a relatively small number of forced sellers staying in the market. So Bitcoin It appears that $18,000. have a very solid baseline at or near “, He continued.

market flexibility

White said that despite strong support near the price level above, Bitcoin is “hovering” near $23,000 recently“So far, bearing in mind that cryptocurrency prices can change quickly and dramatically, this has been very high despite the employment report coming in,” White said.

,It appears that markets are already pricing in monetary tightening These soaring numbers resulted in an even more aggressive outburst from the Federal Reserve. Stocks are down and yields are up,” the expert said. “And then bitcoin is just floating,” the market watcher said.

“I’m not saying we’re experiencing a separation of bitcoin from equities. Certainly we may be down another leg in terms of the price of bitcoin. But this relative strength tells me that Most bitcoin sales may be delayed And barring external shocks to the markets, such as credit markets that appear to be on the brink of collapse, I think investors still see bitcoin as a bargain at these levels,” White said.

potential loss

While White discussed bitcoin’s recent price resistance, Tim Enning, CEO of Digital Capital Management, said the cryptocurrency It could be a retest of recent lows below $18,000which arrived in June.

“Bitcoin has made a good if not entirely reassuring change, at USD 20 thousand as recent resistance (from July 15) to support (after that date, tested once on July 26 and 27, and solidly up since then),” Ennejing said. He added: “While it has been a good move Yes, it has been quite slow and seemingly uncertain, especially given the summer break.”

“As a result, most are still hedging their bets on whether BTC will test the June 18 low of $17.6k. Going forward, I would expect a more general slide, a small positive move, and this That the floor will not be retested. It’s a 50-50 proposition if $20,000 will be retested, he said.

improve sensation

According to the Crypto Fear and Greed Index provided by Alternative.me, investor sentiment has steadily strengthened in recent weeks. This index, which varies from zero 100 for “extreme fear” and “extreme greed” are currently at 31, indicating “fear”.,

The number has been on an upward trend since June 19, when it reached a value of six, indicating a state of “extreme fear”. Also, The index has remained at 20 or higher since July 18 ,

Armando Aguilar, an independent cryptanalyst, commented on how the measure has changed in recent weeks. ,fear and greed index From the low 20s after the Great Crash to some crypto protocols and service providers, he said.

“Investors have gone back to buying the digital asset and the fear indicator has moved towards the yellow/buy zone,” Aguilar said. ,Historically, when the index was 30. , the market has seen an increase in prices“, He continued.

an uncertain perspective

Aguilar provided a comprehensive analysis that considered the big picture. ,There are still hidden macroeconomic and geopolitical pressuresSo if stocks take a hit and investors exit the riskier asset, bitcoin could hit previous lows,” he said. “However, given the current environment and if bitcoin is able to break above the resistance level, then it could experience a positive price increase,” concluded Aguilar.