Just-In: Bitcoin (BTC) Bottomed? Here’s What Grayscale’s Report Say
Bitcoin (BTC) price started the week by successfully soaring above the $22,000 psychological level, making a high of $22,795. The recent rally makes speculation that Bitcoin (BTC) might have bottomed out. However, Grayscale’s latest report on crypto market cycles reveals the bear market could last another 250 days.
Grayscale’s Latest Report Nullify Bitcoin Bottom Speculations
Digital asset manager Grayscale in its latest report “Bear Markets in Perspective” reveals that just like traditional financial markets, the crypto market also has cycles that last nearly 4 years or 1,275 days.
Grayscale has defined a market cycle by implying when the Realized Price moves below the Market Price. However, the report asserts there are various methods to identify a market cycle.
The present cycle started in 2020, with 1191 days completed. In about four months the Realized Price
crosses back above the Market Price. Based on this, the downward or sideways price movement could continue for another 5-6 months.
Interestingly, the on-chain data reveals an increase in exchange outflows and small Bitcoin holders in mid-2022. This could mean investors are taking the opportunity to increase their position sizes at a discount.
Historically, every market cycles have some failures that were necessary steps in progressing to the future. The present market cycle shows that despite price declines, liquidations, and volatility, the crypto market
continues to build and innovate.
“This market cycle has already provided us with battled-tested DeFi and infrastructure protocols, innovations in scaling solutions, a growing metaverse industry, and more.”
Crypto Market Rises Despite Fed Rate Hike Amid Rising Inflation
The crypto market this week saw a massive recovery in all cryptocurrencies. Bitcoin (BTC) and Ethereum (ETH) prices shoot higher with both surpassing key psychological levels of $22,000 and $1500.
In the last 7 days, the Bitcoin price skyrocketed by 13% and the Ethereum price jumped over 45%. The recent soaring prices are attributed to the Fed governor’s decision to support a 75 bps rate hike, turning down the possibility of a 100 bps hike at the July-end FOMC meeting.
Crypto analysts believe prices can rise further if it stabilizes above these key psychological levels.
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