A leading analyst at CoinShares, having studied the state of the cryptocurrency market, came to the conclusion that until the bitcoin recession comes, many unpleasant surprises await investors.
Meltem Demirors, in an interview with Squawk Box, stated that she does not see “growth catalysts” for the cryptocurrency, since BTC has not yet plunged into a recession. The expert is sure that the market continues to struggle with the bearish sentiment that has prevailed in recent weeks.
The CoinShares analyst believes that not everything is clear with the crypto market yet and the unfavorable situation may persist in the near future. Cryptocurrency markets can expect serious problems soon, as there are not enough growth catalysts in the face of other unfavorable scaling factors:
“We have yet to see bitcoin in a recession. Perhaps we are already in a recession? No one knows. But given what is happening in the eurozone, around the world and in the United States, that the Fed is raising rates and reducing open market activity… It certainly feels like there are more challenges ahead for tech stocks and crypto.”
Commenting on the situation in these markets and its possible impact on the future, the expert emphasized:
“We have had many liquidations and bankruptcies that have had a huge impact on the market. We’re talking about $10, $20, $30 billion of capital vanishing overnight – liquidity that’s gone out of the system.”
The analyst concludes that “we have not yet seen the full impact of the crisis as most companies in this industry are not listed on the stock exchange, so we are not getting the transparency that we usually see.”
Macroeconomics expert Lyn Alden is of the opposite opinion. She believes that although there are no obvious bullish signals in the crypto market, the worst part of the bearish trend has already been passed.
Source: Bits
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