CoinsPaid Media asked analysts and experts in the crypto field to collect their opinions and forecasts regarding current events, which will determine the situation in the market at the end of July. The first part contains equally relevant opinions. We strongly recommend you to read it in case you missed it.
Collapse Is Inevitable
Evgeniya Simaeva, PhD (Law), believes that the cryptocurrency collapse is inevitable. Due to the measures taken by the Federal Reserve over the past few months, the crypto market continues to lose “blood.”
“June 2022 marked the worst month for Bitcoin since September 2011, as its monthly losses surged to 40%. The cryptocurrency also suffered its heaviest quarterly losses in 11 years,” the expert said. In her opinion, the market today survives thanks to traders and speculators, while big investors have lost faith in crypto. “We might see the situation on the brink of collapse in early August 2022. The value may fall by 70-80%. As a result, BTC will soon have a price of about $15,000,” concludes Evgeniya.
Bitcoin at $10,000
Senior Analyst at Esperio, Anton Bykov, also believes that the market is in a downtrend. Quotes of the first cryptocurrency show weakness, possibly being the last thing before its final decline. The price of Bitcoin could fall to $10,000 given this scenario. The main reason for the stock and crypto market crisis, which other experts have previously mentioned, is the Fed’s actions that make access to liquidity harder.
“Recent figures on the labor market were on par with the spring months, which means that so far the agency’s current strategy hasn’t caused significant harm to the U.S. economy. Therefore, rates could be raised by 75 basis points at the next meeting.
In fact, a market reversal would require a reduction in the cost of funding margin operations. What has happened with 3AC, Celsius, Voyager, Babel, and others is the result of tighter credit conditions coupled with falling asset capitalization. As the market declines further, the pressure on players will increase, and the number of closures, including forced ones, will also grow. Just a few days ago, it became known that NEXO had decided to liquidate its ETH positions — more than 100,000 ETH was withdrawn to exchanges,” says the expert.
The bottom line is that the situation in the market remains tense, and there is no sign of any improvement.
It’s Always Darkest Before the Dawn
Alex Davis, Founder of Mavryk Finance, shared his discouraging but still more optimistic predictions. The expert believes the market is tilted downward under the influence of internal and external factors.
“The crypto markets are acting in correlation with global markets, except there is a unique purge in the crypto industry. Bad actors being flushed out, rampant money printing leading to inflation, Russian energy supply concerns affecting the euro, YTD market performance with upcoming Q2 earnings reports, the list of reasons why we have yet to see the bottom is virtually endless,” Alex states.
The expert believes that cryptocurrencies have almost hit the bottom of their downward trend, but “at this point, anything may act as a catalyst for another short-lived black swan event.” However, the analyst thinks there is no need to get upset since after overcoming this terrible period, recovery will be inevitable.
Everything Goes According to Plan
Valuechain Founder, Michel Khazzaka, holds the view that central banks orchestrated the crypto market meltdown. Some ECB officials said the blockchain revolution was useless, yet all EU countries rushed to tax the crypto industry in order to have more control over investments.
“The justification given is the fight against money laundering and terrorism financing, although illicit crypto operations account for less than 0.15% versus 3 to 5% in fiat, according to the SEC in the USA and Chainalysis Crypto Crime Reports,” Michel says.
The expert noted that European states would continue to fight the cryptocurrency market, but this won’t stop its development and expansion. “Meanwhile, Bitcoin will win the energy battle thanks to the greener energy mix its mining uses. [It is proven] that banks consume much more energy than Bitcoin and are at least as energy efficient at the single transaction level,” Michel concludes.
*Photos from personal archives
