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The Crypto Market Appears to Have Hit Backside… for Now
2022 has already been an attention-grabbing yr for crypto. How attention-grabbing will depend on your perspective. Let’s take bitcoin, for instance.
Right here what bitcoin’s chart seems like:
1 Day: +0.33%
5 Day: +5.4%
1 Month: -27.12%
6 Month: -7.67%
Yr-to-date: -22.56%
1 Yr: +21.52%
5 Yr: +3,469.50%
Now let’s check out Ravencoin’s (RVN) chart:
1 Day: -1.93%
5 Day: +4.89%
1 Month: -34.09%
6 Month: -50.47%
Yr-to-date: -35.84%
1 Yr: +303.38%
Since March 2018 debut: +101.69%
As these two charts present, timeframe issues for buyers. It’s by no means enjoyable when the market is correcting (or freezing chilly). However it’s value being in high quality cash for the lengthy haul.
By way of the crypto market this yr, the market feels prefer it has bottomed out for now. For the brief time period, bitcoin seems to be in a buying and selling vary of $33,000 to $40,000. However a collection of upcoming occasions might spook the markets.
Usually, bitcoin is a non-correlated asset. It doesn’t transfer in tandem with inventory markets. However bitcoin can act like a correlated asset when there’s a whole lot of panic promoting or a serious correction within the fairness markets. With the Fed prone to enhance rates of interest in March, we might see vital downward stress when the (anticipated) fee hike is introduced.
In principle, the speed hike ought to already be priced into the market. However I don’t suppose it’s. So we might see some downward stress there.
Then there’s ongoing regulatory issues. The SEC desires to introduce rules this yr. Bitcoin mining got here below scrutiny in Congress this week. The Worldwide Financial Fund is sad with El Salvador embracing bitcoin as authorized tender. Russia desires crypto to simply disappear. And that’s just the start of the record.
If bitcoin continues to remain above the $30,000 mark regardless of the headwinds arising, the markets could possibly be okay. And we might even see a little bit of a rally. If bitcoin drops under $30,000, I imagine it can ultimately sink properly under that.
22V analyst John Roque notes that the median bitcoin bear market decline is 78%. Which means $15,000 is probably going absolutely the ground.
And that’s excellent news for crypto house owners. The final ground was within the $3,000 vary. And that’s what we normally see within the crypto market — larger lows and better highs in every cycle.
The following a number of weeks will decide which route we’re heading in. Adam wrote just lately that he believes the market has bottomed out. And it definitely seems like that for now. Let’s hope it stays that method.
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