Bitcoin and the rest of the cryptocurrencies are recovering oxygen after hard days, with millionaire losses for investors. In a rally that is not yet known how long it will last, the market recovers with increases of up to 14% in the last 48 hours.
Instead, according to Naeem Aslam, Market Analyst at Avatrade, the market could see bitcoin drop to $15,000. “In the world of cryptocurrencies, consolidation is the word that comes to mind when one looks at the price action of bitcoin,” says this expert.
“It doesn’t bring a lot of confidence because the bitcoin prices are seriously oversold, and we should see much stronger rises. Still, we actually see a very small amount of buying that is holding the price down to $20,000,” he added.
“I think given this price drop, from the all-time high above $68,000 to $20,000 now, it will probably take a while to come back. It will probably take a few months or a couple of years,” said Changpeng Zhao (CZ), CEO of Binance, the world’s largest exchange.
Kevin O’Leary, a Canadian businessman and television presenter, who in 2021 decided to try his luck and enter the world of cryptocurrencies, considered that the end of the crisis had not yet come.
Brad Garlinghouse, CEO of Ripple Labs, has claimed that the United States Securities and Exchange Commission, or SEC, has inconsistently imposed regulations on companies that handle cryptocurrencies in the country.
Speaking to Wired’s editor-in-chief at the Collision conference in Toronto on Thursday, Garlinghouse pointed to Ripple’s ongoing legal battle with the SEC, in which the federal regulator has alleged that company executives conducted an “unregistered digital asset security offering” with the sale of XRP tokens. Garlinghouse referenced the SEC’s approval of Coinbase’s public offering in April 2021 despite the cryptocurrency exchange listing XRP at the time.
“The SEC now seems to take the position when they sued us that ‘XRP is a security and always has been,’ but they approved Coinbase going public even though Coinbase is not a registered broker,” Ripple CEO said. “There are some contradictions here from the SEC almost not, within their organization, knowing left hand, right hand.”
The future of cryptocurrencies appears uncertain amid the recent wave of sales in Bitcoin and the rest of the tokens. Among analysts there is a diversity of opinions: while some assure that the price has already hit a floor, others assure that the decline may be greater, for which owners and investors are concerned about the stability of digital tokens. A recent study predicted that the so-called “crypto winter” will wipe out 80% to 90% of altcoins.
This is stated by Louis Schoeman, CEO of Forex Suggest through an analysis. “While in the short term this price crash may have a negative impact, the drop will help surviving currencies to strengthen further,” Schoeman said. But it’s not all negative, as current market conditions “provide an opportunity new investors to get a piece of these assets for a fraction of the previous prices”, he added.
“With massive inflation data and the semi-collapse of the Celsius network fueling the downward spiral, I think only the best fundamentally strong crypto projects will survive this bear market”Schoeman says. “This is a remarkable cleanup process, as we believe that 80%-90% of crypto projects will not survive beyond this period, especially if bitcoin falls and remains below $20,000,” warned the expert.
“In these difficult times, we cannot lose sight of the fact that some of these currencies are going to continue, but the most important thing is that blockchain technology is going to mean a substantial improvement in the efficiency of companies, and therefore , will have a very positive impact on the economy in the near future,” said David Levy of DiverInvest.
For his part, Lark Davis, founder of ‘The Wealth Mastery’, acknowledges that it is impossible to know exactly which coins will survive the crypto winter. But he identifies “A few factors that will help us figure out which ones have a good chance of coming out stronger than before.”
First, their cash reserves. “It is a very important metric, but few projects will be open when it comes to providing this information,” commented the expert, and Telegram or Discord channels will have to be investigated. “If teams can’t give you a halfway decent answer, it probably means they’re not doing well financially.”
After, it is important that the project has a solid business model, with a continuous source of income. “Coins that have solid models, economies or that pay dividends have the best chance of coming out stronger,” specifies the founder of The Wealth Mastery.
Token unlock schedules are also an element to consider. “If the market is about to be flooded with tokens, expect a sharp price drop,” says this expert, more so with the existing panic and low market liquidity.
Which leads precisely to the question of how liquid cryptos are, especially small caps. This is important, as “as the cryptocurrency market contracts, we may see liquidity for these coins drying up to almost nothing. That means our coins cannot be sold.”
Likewise, the analyst wonders if there is a real community behind the project. “When you post on Twitter does anyone care or get involved? Is there a Telegram group, and if so, what are people saying, and is anyone there?
Other aspect, difficult to understand for the average investor, but important is how are the technological advances of the token and the chain of blocks that it supports. “Most projects will have a GitHub that can be tracked, says the analyst.”
Finally, Davis advises looking at a token’s performance history in the bull market. If a token has already been butchered at the time of plenty, why would we assume that these coins will do better in a brutal bear market? “If things look bad now for a currency, they will most likely only get worse as financial pressure, social pressure, boredom and general bear market despair mounts,” the expert comments.
By way of closing, the expert asks investors not to get carried away, since the bear market will last. Likewise, he urged to remember that “even if a coin looks impressive and ticks all the boxes, it can fail miserably.” “So don’t put all your eggs in one altcoin’s basket”sentence.
The Bitcoin price for this June 24, 2022
Source: Ambito
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