Confidence Will Take A While
The recent market crash has seriously impacted investor faith in the cryptocurrency market. As such, sell-offs across digital assets such as bitcoin have been rampant. Sentiment has also suffered greatly during this time and has led to low momentum in the market. This is not changing anytime soon.Related Reading | Bitcoin Bounces Back Before Hitting 2017 Peak, Is The Bottom In?
Bears take hold of BTC | Source:Novogratz also speaks to the current economic climate. One thing that has rocked various financial markets has been the hiking of rates by the Fed, the most recent hike happening on Wednesday. He notes that the Fed would have to let up on hiking interest rates at some point and once it does, more money from global macro hedge funds will flow into the market. At this point, Novogratz admits that Galaxy Digital will add more bitcoin to its holdings.
Bitcoin On The Charts
The price of bitcoin continues to fluctuate heavily between the $20,000 and $21,000 levels. This shows that while there is mounting resistance at the $22,000 point, there is also good support building up in the low $20,000s. The short-term prognosis for the digital asset does not look good though. However, there are still some indicators that point to some recovery in the market. One of these is the cycle low before every bitcoin halving.Related Reading | Bitcoin Funding Rates Remain Negative But Open Interest Tells Another Story
Featured image from Watcher Guru, chart from TradingView.com
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