Yassine Elmandjra, analyst at Cathie Wood’s company ARK Investment Management, Bitcoin (BTC) believes that risk assets such as
“Bitcoin May Continue to Suffer if the Fed’s Interest Rate Policy Continues”
In a recent Twitter post, Elmandjra did not rule out the possibility that the Fed would continue to raise interest rates despite recession fears. In such a situation, according to the analyst, the world’s largest cryptocurrency The price will likely fall further, although it recently recorded its worst quarter in more than a decade.
Unrealized net losses (NUPL), which fell 17% below the total cost basis, also suggest that Bitcoin may experience another correction, according to the analyst. According to Elmadjra, NUPL had fallen as low as about 25%, near the lows of previous market cycles.
1/ Bitcoin is trading below its 200 WMA and short-and long-term cost bases for only the fourth time in price history.
These levels have historically marked generational bottoms. pic.twitter.com/UuEUWTdWT6
— Yassine Elmadjra (@yassineARK) July 4, 2022
However, for the first time in its history, Bitcoin fell below its 200-week moving average (WMA) on a short- and long-term cost basis. According to Elmadjra, this indicates that the cryptocurrency leader may be trading near another “general bottom”.
Elmandjra said that key features of BTC, such as network security, network usage, and investor behavior, “seem stable” despite the collapse of giant companies such as Terra, Celsius and Three Arrows Capital.
According to the analyst, the “Puell Multiple”, one of Bitcoin’s key indicators tied to miners, has fallen to its lowest level in the last three years. This could indicate that BTC has likely bottomed out, as the value of newly minted coins is relatively low compared to the average numbers, according to Elmandjra.
*Not investment advice.