When Will the Crypto Industry Finally Stop Its Own Crushing Itself?
This is a statement that is ringing in the ears and thoughts of analysts and industry heads everywhere, and the attitude that there needs to be a few things is that there needs to be a few things. To start, there has been a gradual increase in macroeconomic variables. Things like inflation need to diminish, and the economy and the stock market also need to show indications of repairing themselves rapidly.
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If the cryptocurrency market is going to see any improvement, several trading patterns will need to be implemented, according to the opinions of many analysts. In conclusion, the purging that has been taking place recently needs to ensure that all unscrupulous participants and feeble crypto firms are removed from competition for good. According to them, this sector is being thoroughly ruined by these entities, which also prevents it from achieving an appropriate degree of popularity in the mainstream.
The cryptocurrency industry has been going through a period of unprecedented hardship over the past half year. The valuation of the digital currency industry has decreased by more than $2 trillion, while assets such as bitcoin, which is the most popular digital currency in terms of market cap, has experienced a value reduction of almost 70 percent. In November of the previous year, the value of the currency reached a new all-time high of around $68,000 per unit when it was being traded; but, at the time of this writing, it is battling to keep its position of either $19,000 or $20,000.
CK Zheng, co-founder of the cryptocurrency hedge fund ZX Squared, recently shared his insights on the market, asserting the following:
If inflation is under control, the economy is under control, and there is no truly severe recession, then there is no recession at all, in my opinion.
For example, inflation in the United States is currently at a level that is 9.1 percent higher than it was 40 years ago, but businesses such as Bank of America have been sounding the alarm on a recession for quite some time.
In addition, Vijay Ayyar, who is the vice president of corporate development at the cryptocurrency exchange Luno, added his two cents worth to the conversation by commenting as follows:
If we see hints of this this month or even over the coming several months, it will give the world more comfort that a bottom is in across all risk assets including equities and cryptocurrency. This will give the industry more comfort that a bottom is in among all risk assets.
There Is No Way for the Fed to Raise Interest Rates
According to the head of analysis at Coin Shares, James Butterfill, a weakening domestic forecast for the future could prevent the Fed from rising rates, which could ultimately lead to a recovery in bitcoin and other forms of cryptocurrency in the coming months. He remarked that
It would also be helpful to identify a true floor if the Fed were to reverse its policy and the dollar index, which measures the value of the dollar, reached its highest point. At the meeting that will take place at Jackson Hole at the end of the summer, this is something that we believe will most likely take place.
The cryptocurrency industry has also been hampered by the failure of a number of digital currency firms, some of which have even filed for bankruptcy. Three Arrows Capital, Voyager Digital, and Celsius are just some of the companies that are changing their focus in this area.
Humphrey Arinze Chukwu 38 w
What are the necessary conditions for the cryptocurrency market to evexntually reach its bottom?