CoinShares Predicts Bearish Storm for BTC, ETH, ADA, SOL2 min read
CoinShares Chief Strategy Officer Meltem Demirors predicted a longer-than-expected winter for BTC. But in addition to Bitcoin, he said that Ethereum, Cardano, Solana and Polkadot are also expected to fall in the short term.
CoinShares predicts bearish season
According to Demirors, the cryptocurrency market is still far from a trend change. That’s because macroeconomic indicators can still push BTC into a long dead zone.
“For us at CoinShares, the vision is that we are going to stay where we are for a while,” he said.
Furthermore, he pointed out that there are no short-term positive catalysts. “We can still see the BTC into an even bigger recession”, he pointed out.
Based on this, he believes that instead of a new high, market investors should expect more pain.
“Certainly expect more pain ahead for tech stocks as well as cryptocurrencies.”
As the analyst highlighted, there are still many activities outside the blockchain, such as OTC contracts, that can force BTC down. In the last half of 2022, cryptocurrencies suffered a painful drop in terms of market value.
The market has retreated from $3 trillion at its peak in November to less than $1 trillion now. BTC has lost over 70% of its value since hitting its all-time high.
Furthermore, some cryptocurrencies have dropped by more than 85%. Meanwhile, BTC continues to trade against the Dollar Index (DXY).
This indicator has now reached a 20-year high with rising inflation. Historically, this is a bad sign for BTC.
However, according to Bloomberg Senior Commodities Strategist Mike McGlone, that could soon change.
“The Federal Reserve could experience lasting deflation limiting the rise of DXY and pushing BTC higher,” he points out.
Last week, the expert shared the Bloomberg Galaxy Crypto Index. According to him, this indicator is “approaching a similar drawdown to the 2018 bottom”. Therefore, this indicates a possible trend change for BTC.
“Our bias is that BTC adoption is more likely to continue rising and the price will also follow this rise.”