The market valuation for all cryptocurrencies decreased by 24% to $770 billion between November 8 and 10. Asset values rose 16% as fear receded and forced future contract liquidations lessened.
Moreover, Bitcoin (BTC) might fall to the earlier July values back in 2020, according to Bloomberg Intelligence senior macro strategist Mike McGlone.
With due diligence looming over the asset class, there is a lot of panic in the cryptocurrency community right now, and the future looks gloomy for altcoins. Experts like Mike and others are constantly cautioning investors to remain vigilant before purchasing any tokens right now.
In the interim, Mike has pointed out that, throughout the coming weeks, the price of Bitcoin may decline by 39% from its current level and revert to the support level of $10,000.
To provide clarity to the eager market participants, the macro specialist has now emphasized the difficulties risk assets will face in the future.
As expected, he stated that there is a possibility that BTC and other coins may see a massacre in the future, owing to the current capitulation period.
“Capitulation sell stops” might be triggered in other markets that have been under pressure this year if Bitcoin and other crypto assets were to collapse.
Then, he drew attention to the fact that, as of November 9, the great risk-asset regression of 2022 had already become apparent. Regrettably, the remaining trading sessions may, however, set the stage for 2023, with Bitcoin acting as one of the race’s fastest horses and top leading indicator, breaching the support and running the risk of returning to the $10,000 threshold.
The BTC trend, on the other hand, is currently trading at $16,362, down by almost 20% from the month’s high of $21,480 achieved last week. As a result, this can be interpreted as a clear sign that the prices may drop as predicted.
The failure of the FTX cryptocurrency exchange and the ensuing damage to Sam Bankman’s reputation, according to the senior macro strategist at Bloomberg Intelligence, will have a significant impact on the macroeconomic conditions. Investor confidence is rattled, which has had a negative influence on cryptocurrencies.
The Bottom line
Due to cryptocurrency frauds and the current political unrest, the largest asset class has lost its allure in the community, and a massive dump has made the situation worse. It will be intriguing to see what the trading trends of 2023 bring.