After 9 consecutive weeks of decline for Bitcoin, the crypto market is seeing a bit of a blue sky. The whole market increasing after the Bitcoin and Ethereum giants.
A lull in the storm?
The crypto market, following the traditional markets, has a complex start until 2022 and is set in a downturn, at least in the short term. In particular, Bitcoin has experienced 9 consecutive weeks of decline, an exceptional situation.
According to analysts, like Julain Pellicer from Into The Block, this improvement is due to a revival of form in traditional markets:
I think the recent BTC price action has had a major impact on the rebound in US markets. So far the S&P is recovering almost 10% from last week’s low, so some market may think we are approaching a rapid recovery after the last sharp reform.
Despite a declining correlation last week between the traditional market and the crypto market, this week seems to be the result of a catch-up effect of crypto assets on stocks that had a great weekendlast week.
For Pellicer, in particular crypto markets are ready for a bull rally in the coming weeks. News that many investors will enjoy in the crypto market.
Still negative market outlook
Despite this improvement, the market outlook on cryptocurrencies remains pessimistic. The Feer and Saint Indicator reflecting market sentiment that he is still in the red with “extreme fear” and a rating of 14.
The geopolitical situation is deteriorating, galloping or even inflation the recent disappointments in the Terra ecosystem remains in the minds of many investors, especially institutional investors. Therefore, dangerous assets such as cryptocurrencies are for the time being neglected by many.
We will have to wait for a more substantial and lasting return to be able to talk reasonably about market recovery. For now, there are the signs encouraging but far too vulnerable to expect a sustained recovery from the bullish trend on Bitcoin and the entire cryptocurrency market.
Crypto-assets are a risky and volatile investment.
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