A crypto markets analyst at K33 Research sees parallels between bitcoin’s recent rise from the troughs of 2022 and its price pattern from 2018 to 2019. The analyst stated in an interview that the current drawdown and recovery phase is strikingly similar to that of 2019 in t...
A crypto markets analyst at K33 Research sees parallels between bitcoin’s recent rise from the troughs of 2022 and its price pattern from 2018 to 2019. The analyst stated in an interview that the current drawdown and recovery phase is strikingly similar to that of 2019 in terms of duration and price movement. Analysts predict that by the end of the year, BTC could reach $45,000.
BTC was trading at approximately $29,212 at the time of writing, a decrease of 2.4%, although it is up approximately 80% in 2023. The recovery follows a year of turmoil, during which numerous significant companies declared bankruptcy, causing risk-averse investors to flee DeFi markets.
Crypto analyst debunks the present BTC price movement
According to on-chain crypto market data, investors witnessed much coerced and cautious selling in the latter half of 2022. This has led to individuals being underexposed and enticed many individuals to short (crypto) while being cautious about adding exposure. This creates a dynamic in which bitcoin rises as a result of short squeezes.
Despite recent price gains, the fintech analyst notes that negative to neutral derivatives sales are additional indications of investor caution. The market’s comparatively low liquidity remained a potential weight on future pricing, although this sentiment could shift.
However, the industry-wide crisis of 2022, which resulted in the bankruptcy of multiple significant companies, including the crypto hedge fund Three Arrows Capital, has already benefited the markets by weeding out bad actors. It has removed many of these bad actors from the market. Consequently, the entire market is currently in a more resilient phase where it can sustain higher interest rates for longer.
The industry has gained knowledge. Nonetheless, comparable crises are inevitable in the future. For the time being, however, these types of dangers appear to have been eliminated from the market. Consequently, the market feels considerably more secure currently.
Crypto takes a back seat as AI accelerates
Artificial Intelligence is the shiniest new thing venture capitalists are pouring money into, leaving once-popular cryptocurrency projects struggling to secure funding. According to Evan Cheng, co-founder and CEO of Mysten Labs, this shift is due to the ability of AI products and applications to serve a broader audience. In contrast, the DeFi industry continues to concentrate on itself.
Multidisciplinary venture capitalists are increasingly turning their attention to artificial intelligence investments, driven by the technology’s proven value to consumers […] ChatGPT came out, and [developers] are building products and applications for consumers and for developers—widespread, large-scale use cases are immediately possible. […] In crypto, the industry has been building products for crypto people.
Evan Cheng
BTC Miners escape the bear market
After a frigid and arduous crypto winter, Bitcoin miners are finally basking in the springtime sun. Companies that pump new bitcoin into circulation have been given a lifeline by the cryptocurrency’s rally to above $30,000 this year, which has combined with falling electricity prices to increase their profitability.
According to data from Blockchain.com, the 30-day average of mining revenues has increased to $27.34 million per day, the greatest level since June of last year. According to market analysts, this scenario played out in 2019 as the bull market gained momentum.
This is a reprieve for miners who struggled to service large debt loads during the majority of the second half of 2022 when revenues languished between $15 million and $21 million. However, they are still a considerable distance from the peak of $61.2 million reached in November 2021.