Despite the glimmer of hope in BTC and ETH rally, analysts and investors alike, remain unconvinced about its sustainability.
Leading cryptocurrencies Bitcoin (BTC) and Ethereum (ETH) are currently putting up a strong showing in their prices, drawing the attention of investors. On Monday, BTC’s price topped the $22,000 mark, its highest level in over a month. According to CoinMarketCap data, BTC is currently trading at $22,105, up 3% in 24 hours. ETH, however, is also up by over 10% in the last 24 hours, as other cryptocurrencies are also seeing greens.
Lately, stock markets in Europe and Asia have been picking up. And seeing as cryptocurrencies are closely tied with equity market trade, there certainly have been hints that the crypto market will also see some lifting. However, there might be more to the upsurge in crypto prices than just the correlation with the stock market.
It is noteworthy that the contagion across the crypto industry has winded down, at least, to a reasonable extent.
Recall that the market crash that happened in April drove big-name companies like Three Arrows Capital 3AC to bankruptcy. And this in turn had an even broader impact on many more companies tied to those high-profile ones. However, the worst period may now be behind as CryptoCompare research analyst, David Moreno believes. He wrote in a research note:
“The worst of market contagion has likely run its course, with the majority of forced selling behind us.”
Meanwhile, despite the glimmer of hope in the rally, analysts and investors alike, remain unconvinced about its sustainability. Moreno opines that this might only be a ‘relief’ bounce and that the next few months will see various back-and-forths.
Furthermore, Grayscale Investment also makes a prediction in its latest Insight report. And if that report is anything to go by, then the current bear market could last another 250 days. In any case, the crypto market is certainly not yet out of the shadows. Presently, BTC and ETH are both down by over 50% since 2022.
Meanwhile, investors are keen on some good news and are hoping that just maybe the extended bear market is finally over.
Mayowa is a crypto enthusiast/writer whose conversational character is quite evident in his style of writing. He strongly believes in the potential of digital assets and takes every opportunity to reiterate this. He's a reader, a researcher, an astute speaker, and also a budding entrepreneur. Away from crypto however, Mayowa's fancied distractions include soccer or discussing world politics.