The well-known cryptocurrency analyst, Cred recently reviewed the cryptocurrency markets. According to him, several factors influence the markets for risky assets. Cred also talked about the price of bitcoin (BTC). Here are the conclusions of his analysis of the current state of the crypto sector.
The influence of central banks on risk asset markets
According to Cred, the COVID-19 pandemic affected the global economy for the first time. Then there was the increase in inflation. The Fed and most central banks have tried to maintain the latter by increasing interest rates. This had an impact on the crypto market. Meanwhile, the US dollar is growing in value, surpassing all other fiat currencies. Cred believes that all these factors influenced the correction in BTC price.
The analyst added that these different conditions are extremely unique. So it is very unlikely that this will happen again in the coming years. According to him, thisthe sequence of events itself is so incomprehensible that we could really only have one in our lives“. He admitted, however, that there will often be corrections in the crypto markets.
Furthermore, Cred believes that investors should take advantage of the current price of bitcoin (BTC) to buy the flagship crypto project. According to him, at $20,000, BTC is an opportunity, as long as you can take some downsides. He suggested that investors will only regret their purchase if their volatility tolerance is low.
It must be said that recent data indicates a future bullish trend in the bitcoin (BTC) market. In fact, the amount of BTC held on crypto exchanges has decreased significantly in four years. On September 30, $700 million worth of BTC was withdrawn from exchanges.
For the famous crypto analyst Cred, investors will be happy, in the long term, that they bought bitcoin (BTC) for 20,000 dollars. In fact, the price of the leading crypto project is expected to rise soon. Cred is also keen to see the prices of other cryptocurrencies rise.
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Far from dampening my enthusiasm, an unsuccessful investment in cryptocurrency in 2017 only increased my enthusiasm. So I decided to study and understand the blockchain and its many uses and pass my pen knowledge related to this ecosystem.