A young woman walks past a bitcoin symbol in the window of a company that offers blockchain application services.
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Last weekend, bitcoin rose as cryptocurrency investors continue to look for the bottom after roughly six months of sales.
According to Coin Metrics, on Monday the largest cryptocurrency by market capitalization was up about 4%. Ether grew by almost 5%.
Crypto continues to move in tandem with stocks. All three major stock averages were also higher on Monday. Investors, holding their breath, watch as prices for risky assets rise, not knowing whether these steps are temporary, or finally there is a more permanent reversal.
However, some say it is too early.
“We believe that this is a relief rally – a bull trap, and that bitcoin may have short-term profits, but is likely to resume the downward trend we have seen over the past two months,” said Josh Alshevich, head of research. at Valkyrie Investments. “Uncertainty in the global economy due to high inflation and the likelihood of a recession combined with central bankers raising rates are likely to lead to a decline in all assets at least until the end of the summer.”
“We still believe that this convergence of factors is likely to lead to bitcoin falling to $ 22,000 before rising later this year, mainly because many institutions and large corporations are buying at this level and they are unlikely or allow their trade to go too far underwater, ”he added.
Last week, according to Coin Metrics, both bitcoin and ether went green in the first positive week out of nine. It was the longest losing streak for cryptocurrencies.
Bitcoin more than halved after reaching its all-time high of $ 68,982.20 in November. This year, it traded in a narrow range before falling below $ 30,000 this month after the Terra collapse.
“Token prices fell 27% in May after falling 20% in April,” JPMorgan analyst Kenneth Worthington said Monday. “The already difficult April environment deteriorated in May due to the collapse of the UST algorithmic stablecoin, which led to a combination of forced sales and uncertainty negatively affecting the broad crypto-ecosystem. April, almost all other growth rates fell last month. ”
Worthington also said the crypto “requires a new catalyst” and that it could be a merger of Ethereum.
Last month, another JPMorgan strategist, London-based Nikolaas Panigirzoglu, said he saw about 30% growth for bitcoin after the recent leak.
Bitcoin interrupts a long series of losses as investors seek the bottom of the market
Source link Bitcoin interrupts a long series of losses as investors seek the bottom of the market