A closely-followed analyst has warned investors, saying that the class of cryptocurrencies could see a massive drop this year. According to the analyst, the cryptocurrency market is facing a very important test and it is not the right time to dwell on expectations about the Fed’s quantitative easing policy. Here are the details.
DataDash host Nicholas Merten says in a new YouTube video that US Fed banking is not a good bet for crypto investing.
“When you start off with false hopes that the Fed can print large amounts of money, this is the worst time to enter the market, and unfortunately, I know a lot of people are excited about the ongoing QE. But that’s not enough to spark another bull market. The fact that the Fed continued to raise interest rates last month is a sign that the Fed will continue to do its job.”
According to Merten, the crypto market is about to face a crucial test and if it fails, the overall market capitalization of the industry could suffer an epic decline.
“To sum up for bitcoin, crypto and overall market cap, we can see that we have entered the potential resistance band that has not been crossed since January. This will be a real test for the market at this point. We’re going down and [tüm zamanların en yüksek seviyelerinden] We really think we’re going to get that typical 85% correction.”
Traders are asking to be patient, as such a drop would bring the overall market cap into a region that has historically acted as support, the analyst said.
“[390 milyar dolar]will be an ideal support range for the total market cap, removing most of the noise in the altcoin space, new market leaders [ve] Wait for trends, that’s the long-term game. We should be patient.”
You can check the price movements here.