After yesterday’s crash, a new study at crypto exchange Coinbase now shows that how things are likely to continue for Bitcoin and Co. in the second half of the year.
Despite the crypto crash: Coinbase remains optimistic
There is currently a sharp rise and fall in crypto-currencies. This week alone saw a mini-rally that saw the crypto market cap increase by about 4% – and immediately afterwards to an accident in which the markets had to lose 8% again.
Bitcoin is currently trading at $ 34,667 after losing 3.5% in the last 24 hours. Meanwhile, cryptocurrency cryptocurrency, Ethereum, is trading at $ 2,558 after the recent 4.2% drop.
Investors are more uncertain than ever about how digital assets will develop. In the midst of this sentiment, Coinbase crypto exchange is releasing a study (“Hype Cycles”) that looks at the prospects for crypto investors. So what awaits Bitcoin and the crypto markets in the second half of 2022?
Forecast: Bitcoin in Q2 2022
According to Coinbase, there could be an explosion in bitcoin supply in the coming months. The reason: Compensation plan of hacked crypto exchange begins Mt. Gox.
In 2014, a whopping 850,000 bitcoins were stolen, and 140,000 BTC were saved. Coinbase now considers the compensations The market could end up in the second half of the year.
“On the cash flow side, we are also monitoring the progress of the Mt. Gox look at when Bitcoin payments of around $ 7-8 billion could hit the market, which could be as early as the second half of 2022 or could be delayed. until 2023. “
BTC oversupply could be bearish. However, Coinbase points that out ongoing bitcoin purchases by stablecoin issuers may offset the flood of new coins.
“This could be offset by the purchase of bitcoin (or other tokens) to strengthen stable coin reserves, comparable to the Luna Foundation Guard (LFG) flows we saw in March and early April.”
Forecast: Q2 2022 – what’s related to Ethereum?
Ethereum is migrating to Ethereum 2.0. This is accompanied by the transition from the previous agreed proof of work model to a proof-of-concept procedure. That is now expected for the second half of 2022. According to Coinbase, this is bullish for Ethereum:
“Ethereum’s move to proofs, which will pose a major event risk to the network, reduces ETH issuance (this asset may be a deflationary asset) and is likely to increase ETH pledge returns.”
At the same time, one expects a bigger second quarter “Regulatory Clarity” from the US Treasury Department. Background: Many agency reports are due in September following the White House order in March.
Either way, Coinbase is looking forward to a strong second half of the year. Among other things, the progressive spread of cryptocurrencies and growing competition could attract more investors.
“In the meantime, we are also likely to see increased competition between decentralized protocols and applications (DApps) that have emerged over the last two years, and we would expect to see new developments that will draw market attention to the field only. this always. . ”
However, it remains to be seen whether this will actually happen or whether the emerging bear market will move further. You can find the full Coinbase analysis here.