Bitcoin’s Bullish Rally Might Be Short-Lived, Here’s Why
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The cryptocurrency experienced its largest weekly percentage rise since February 2021 as of January 13 when it closed the week with 20% gains. Since the collapse of the troubled cryptocurrency exchange FTX, the price of bitcoin, which is presently trading at $20,800, has had a significant run this week, reaching its highest level in more than two months.
The host of the YouTube channel Coin Bureau predicted that the cryptocurrency market slump will extend through 2023. Crypto expert Guy Turner claimed he keeps an eye on traditional markets due to their association with the cryptocurrency market. In light of the gloomy forecast for the property and equity sectors, Turner said he anticipates additional losses for crypto assets.
Even though Bitcoin soared beyond $20,000 from $16,581 on January 1st, Turner predicts that the boom in crypto assets won’t likely last.
“There’s a lot to look out for with what we see from the Fed and what decisions they make. That switch to QE [quantitative easing], if it happens, could be the indication that something’s already gone seriously wrong. I’m kind of keeping an eye on things like the housing market and the stock market as well because we’ve obviously got that correlation between stocks and crypto.”
Will We ‘Turn the Corner’?
He said that he believes a lot of people seem to be expecting the stock market to take the next leap lower, so he is preparing himself for that as well. He also added that he is anticipating sort of more lows. The market may take some time to recover, according to him, but there may be some positive news for some cryptocurrency initiatives. He also said that investors are still hesitant to invest in cryptocurrencies.
“We’ll hopefully see some signs that the macro environment is changing, and there’ll be that excitement that says, “Maybe we’ve turned the corner,” and maybe we have, but I still think that will take some time to manifest itself in the markets.”
