Crypto Market Outlook For Feb-2023: Should You Be Ready for a Breakout or a Breakdown?
The cryptocurrency market as a whole, including Bitcoin, had a stellar January.
However, a modest stumble was seen in the market as February began, despite expectations that it would be another spectacular month. Bitcoin’s price has dropped below the highly acknowledged $23,000 threshold, while Ether’s value has dropped by 2.4% in the last twenty-four hours as of the time this article was written.
Shift In Risk Assets
As February approaches, there has been a proliferation of cryptocurrency market forecasts. Michael van de Poppe, a prominent crypto expert, has issued a caution that a shift in the market for risk assets is impending.
Van de Poppe warns that there is a mounting likelihood that the bullish trend observed in cryptocurrencies and stocks this year may revert to a negative trend. This comes as uncertainties loom regarding the impact of new macroeconomic data from the United States on market sentiment.
For instance, Bitcoin witnessed a 40% surge in January, however, like others, Poppe foresees a potential disappointment for the cryptocurrency in February. He asserts that the United States may likely experience a recession due to the extent of the Federal Reserve’s interest rate hikes.
In his words:
“I think that people should understand that there is no soft landing, that there is likely a continuation of this downward trend on the markets.”
The expert, Michael van de Poppe, now predicts a potential drop in Bitcoin’s price to around $20,000 in February. Despite previously confirming his bullish view on Bitcoin reaching $40,000, he now refers to this time of year as the “Bitcoin to $35-$40,000 season.”
If signs of a decline materialize, van de Poppe believes that a retest of the price between $20,000 and $21,000 may occur. The release of the January Consumer Price Index (CPI) statistics, set for February 14th, will be closely monitored.
If the results suggest decreasing inflation at a lower rate than predicted, they may be positive for the U.S. currency and bolster the crypto market. Alternatively, they may interrupt the market’s downward trend, he said.