Despite a brief easing last week, crypto markets continue to bear fear, which has increasingly defined macro sentiment throughout 2022. With the June month-end closing approaching, bitcoin is facing a few days of reckoning amid what could be its worst monthly performance since 2018.
Traders are already expecting July to provide BTC price “catalysts”. There is very little bullish sentiment in the market, as evidenced by the “extreme fear” of the Cryptocurrency Fear and Greed Index, which is still firmly in control as reported by Cointelegraph.
“BTC will capitulate in the next 6 months and hit the bottom of the cycle (anywhere between $14,000-$21,000), then peak around $28,000-$40,000 in most of 2023 and will be at about $40,000 again by the next halvingVenturefounder, a contributing analyst at on-chain analytics platform CryptoQuant, summarized in part of a Twitter update on June 27.
Venturefounder’s thesis is indicative of a broader belief that bitcoin hasn’t bottomed out yet, and that any relief move is exactly that: distractions on the way to lower levels draining capital from market novices and investors. weak hands.
Expectations are that the first week of July could provide the next big bout of market volatility in cryptocurrencies and risk assets.
For Arthur Hayes, former CEO of derivatives giant BitMEX, the first week of next month is a time when the superstars will line up to punish the hodlers once again.
In a blog post in early June, he noted that the US Federal Reserve’s rate hike and balance sheet shrinkage were the backdrop for a nightmare for risk assets. “By June 30 (end of the second quarter), the Fed will have enacted a 75 basis point rate hike and started to reduce its balance sheet. July 4 falls on a Monday, and is a federal and banking holiday. This is the perfect setting for another big cryptocurrency crash.Hayes warned. So a “wild ride to the downside” could be just days away.
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Source: Ambito
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