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.
There Is No Money
According to Ivona Gutovich, COO at Green Crypto Processing, the lack of liquidity caused by the Fed’s tightening monetary policy is the main problem behind the crypto market’s poor state. The expert believes that following the increase in interest rates and the rise in bank funding costs, speculators have had to change habits and choose less risky investment tools.
“The cryptocurrency market lacks risk-free instruments, causing investors to flee the market completely if a risk-off scenario occurs. This also applies to lenders: they’re forced to raise the cost of loans, though more often than not, they just leave excessively risky industries. As a result, we not only have no liquidity available for speculation but also problems with effective position closing because counterparties are experiencing exactly the same problems,” says Ivona.
The Market Is on Vacation
Vyacheslav Konovalenko, CEO of Syndicate, notes that traditional financial markets have always had a sluggish summer. The big players and their employees go on vacation, so you shouldn’t expect market volatility until the season’s end.
“Most likely, BTC will continue to slightly recover in the near future, approximately to $23,000-23,500. However, in my opinion, it’s far from the beginning of a new rally in the market. We might see another attempt to renew the lows. The market recovery will start not earlier than the fall/winter of 2022,” the expert believes.
The Endless Fall Doesn’t Exist
Vadim Tsarenkov, a leading crypto analyst at Vekus Mining Development, thinks that the fall of cryptocurrencies along with stocks and the stock market is a “good” sign, as it speaks of a global crisis, not that of the crypto industry. When analyzing cryptocurrencies, the expert takes into account previous market cycles, technical and fundamental analysis, and observes the correlation of cryptocurrencies with other markets generally, and specifically, such as BTC and the S&P 500.
Logarithmic Chart of Bitcoin Price Change
“If you refer to the logarithmic chart of Bitcoin price change (one candle on the chart equals one month), you can build the ascending channel since 2013 from which the price only exited once, during the corona dump in March 2020, but quickly returned to the ascending channel. The June 2022 candle looks the worst of the last nine years. It signals a broken bull market pattern, and we may see a completely different market in the coming years.”
Chicago Mercantile Exchange (CME) BTC Futures Chart
“On the Chicago Mercantile Exchange (CME) chart, I see price gaps to which the BTC price sooner or later returns. We’ve recently bridged such gaps at $25,000 and $19,000. New price gaps remain relevant in the area of $28,000, $35,000, and $9,700, being the most “mature” gap from 2020. Time will show which of these directions Bitcoin will choose, but the benchmarks have been set.”
The expert believes the market will definitely bounce back, and investors will see cryptocurrencies grow by tens or hundreds of percent.
A Test of Strength
Dmitry Noskov, a StormGain exchange expert, believes that crypto projects are currently being tested for their strength. “Where the business model was designed for explosive growth at the expense of stability, there are liquidity problems. Terraform Labs, Three Arrows Capital, Voyager Digital, and many others have already failed the test,” the analyst states.
He says that not only investment companies but also public miners are experiencing problems now. Most of them used to increase equipment capacity at their mining farms with loans. Now they’re forced to sell coins at low prices to pay back the loans.
“The market purge continues, keeping the pressure on cryptocurrencies until late July. A lot also depends on the Fed’s position, which has set its sights on tightening monetary policy in 2022. In case of another key rate hike in July, cryptocurrencies may return to testing local lows,” Dmitry shares his view.
In the next article, you can read other specialists’ opinions about the market outlook for the end of July 2022 (the link will be here right after the publication).
*Photos from personal archives
