Is the crypto winter over? This is what analysts say

For analysts, it is still too early to know if this trend is a market recovery. Experts point to the lows of June, when bitcoin dipped below $18,000, as the level to watch for possible falls.

The most bearish do not rule out that depreciates up to $10,000. Among the experts consulted by Finder, Martin Froehler, CEO of Morpher, believes that cryptocurrency will sink to $12,000 before recovering to $40,000 by the end of the year.

Cryptocurrency price this Friday, July 15

The bitcoin downturn mirrors the broader market, with 77% of panelists saying we are officially in a ‘crypto winter’. According to 70% of those surveyed by Finder, the biggest driver behind the cryptocurrency crash is the global interest rate hikes. This is followed by collapse of Terra LUNA (68%)the tightening of balance sheets by central banks (47%) and the increase in inflation (40%).

However, how long the crypto winter will last is up for debate. Only 29% believe the market will recover this yearwhile 46% say it will last until 2023 and 24% say it will last until 2024 or even longer.

Paul Levy, Senior Lecturer at the University of Brighton, believes that the crypto winter will last until the second half of 2023 and considers that the crypto currency will end 2022 at $15,000. “Bitcoin is likely to rally in 2023, which may actually lead to inflated expectations and further volatility. Much of this, of course, depends on world events like the war in Ukraine and its own continuing impact on global confidence,” he notes.

Vetle Lunde, analyst at Arcane Research, places the bitcoin bottom at $13,000 and the level at which the year will end at 20,000 greenbacks. “A host of negative forces have crushed bitcoin…further hardening and unwinding of crypto bad debts will create sobering times ahead, and investors should tighten their belts for more hardship,” he stated.

The analytics firm’s average panel price predictions for bitcoin have dropped sharply this year. In April, the panel expected bitcoin to be worth $65,185 by the end of the year, meaning the average prediction is down 61% in just a few months.

Although still significant, price predictions for 2025 and 2030 have declined less drastically but they are still well above bitcoin’s all-time high of nearly $70,000.

In April of this year, a similar survey thought bitcoin would be worth $179,280 in 2025 and $420,240 in 2030. Today they expect the digital currency to be worth $106,757 in 2025 and $314,314 at the start of the next decade. , which represents a drop of 40% and 25%, respectively.

With long-term bullish price forecasts, 50% of the Finder panel now say it’s time to buy BTC (up from 67% in April) with 40% saying it’s time to hold and 10% selling.

Glassnode analysts wrote that bear market “still requires an element of duration” as long-term holders (LTHs), who tend to have greater confidence in Bitcoin as a technology, increasingly bear the largest unrealized losses

They added that the market may need more “downside risk to fully test investors’ resolve, and allow the market to establish a resilient bottom.”

But the worst thing is the catastrophic forecast on Wall Street that predicts that the debacle will be deeper than it was until now.

Since Bitcoin peaked at $65,000 in the middle of last year, the highest-value cryptocurrency has been steadily falling below $20,000. There are not a few investors who expect additional falls of up to 50%, up to $10,000.

According to the MLIV Pulse survey, 60% of the 950 investors surveyed believe that $10,000 price could be coming for BTC. But the remaining 40% believe bitcoin will gain 50% from here to $30,000.

Jared Madfes, a partner at Tribe Capital, a venture capital firm, told ‘Bloomberg’: “It’s very easy to get scared right now, not just in crypto, but in the world in general.” Expectations of a further drop in bitcoin reflect “the inherent fear of people in the market.”