A bitcoin trader predicts that this summer's price activity for BTC
A bitcoin trader predicts that this summer's price activity for BTC
will be horizontal at first, then more choppily.
The hardest times for the cryptocurrency industry are still to come, according to both Crypto Jebb and independent market expert Scott Melker.
Over the past several weeks, discussion about the condition of the cryptocurrency market has dominated headlines as non-crypto media criticises Bitcoin (BTC) and DeFi holders for holding investments with little intrinsic value. Crypto-savvy analysts and traders have been poring at charts at the same time to hunt for cues that indicate when the market may bottom and change direction.
However, for those who have been there for several cycles, this current bear market is just another forest clearing fire that will eventually lead to a better ecology. New investors are undoubtedly apprehensive, and some have prophesied the extinction of the booming asset class.
With Crypto Jebb and independent market analyst Scott Melker, the future course of the cryptocurrency market was a subject that was thoroughly examined. The two exchanged opinions on why they believe Bitcoin's value proposition is still compelling and on possible future price movements for the leading cryptocurrency.
Bitcoin is being utilised for its intended purposes.
The spot price of Bitcoin is the main focus for traders, who are bemoaning the fact that it isn't acting as the inflation hedge that many had predicted it would. However, Melker noted that the performance of Bitcoin is heavily influenced by the nation and economic situation of the user.
Bitcoin may have declined significantly in terms of U.S. dollars, but when compared to nations with hyperinflation like Venezuela or large populations without access to banking like Nigeria, BTC has given people a way to keep their money's value and conduct transactions in a transparent financial system.
The fact that Bitcoin is the first true asset that has given people the option to leave the current financial system if it is not working for them is one of the most important features emphasised by Melker.
According to his definition of thermodynamic soundness, bitcoin is an asset that holds onto the energy introduced into the system and does not "leak" it out through processes like inflation.
Which way will the market go?
Regarding the market's future, Melker made sure to stress that "the adoption of Bitcoin is faster than the internet," even though it may not appear like crypto adoption is going quickly to those who have been in the business for years. It has a hockey stick shape and is unquestionably becoming parabolic.
Crypto Jebb and Melker both argued that the paradigm shift toward cryptocurrency investment just needs more time because most investors and those who have been trained to invest in things like a 401k or Roth IRA have been taught to dread risk.
More downside is anticipated in the near future.
The market is in horrible shape right now, and in the near term, it's crucial to keep in mind that "the trend is your friend" and that additional decline is probably in store.
The Fed's tightening cycle, which historically has put pressure on asset prices for the first three quarters of the tightening cycle until the market adjusts to the new reality, is one development that Melker hinted could help the market out of current doldrums.
