Analysts and cryptocurrency experts shared their opinions with CoinsPaid Media about the current situation in the market and the expectations for the near future.
The Ice Hasn’t Broken Just Yet
Dmitry Noskov, a StormGain exchange expert, predicts a negative market outlook for early September. “Bitcoin has now fallen below the psychological mark of $20,000 and will apparently continue trading below this significant level. Ethereum has also dropped below $1,500 several times. Besides, investor sentiment will be influenced by the rhetoric of U.S. financial regulator representatives, who make no secret of their intentions to keep raising rates,” the expert forecasts.
Dmitry believes that investors prefer using more reliable financial instruments, and investing in dollar assets. On the other hand, cryptocurrency is known for its volatility and is a high-risk investment.
It’s Only a Matter of Time
Alexander Visotsky, founder of Visotsky Consulting, believes that cryptocurrencies may return to their all-time highs in the not-too-distant future. “According to my forecasts, volatility in the crypto market will continue. This “fever” is due to the U.S. central bank tightening its policy. We’re likely to see a similar market situation as in July-August.
There is a chance that cryptocurrencies will return to their maximum values. However, this isn’t a short-term prospect but rather a medium-term one — in other words, it won’t happen in September. Qualitative changes will occur if the Fed changes its policy. But this is predicted to happen only at the beginning of next year,” the expert shares.
“We Should Expect Global Changes as Winter Approaches”
Ivona Gutovich, COO at Green Crypto Processing, cites several reasons why the cryptocurrency market is unlikely to recover in the early fall. “Active growth in digital currencies is hindered both by rising inflation in the EU and the unstable geopolitical environment in the world. Investors seek to redirect funds from high-risk assets, including cryptocurrencies, to less risky ones. Given the fact that there is no breaking news in the crypto market at the moment, we shouldn’t expect a sharp rebound upwards. The first cryptocurrency will continue to hold at $19,000 to $21,000, and Ethereum will fluctuate throughout September from $1,300 to $1,900. We should expect global changes as winter approaches,” says the expert.
September Will Be Bearish But Calm
Roman Malyshev, founder of Asgard, reports that several important events are coming up in September. One of them is the U.S. Federal Reserve meeting, where the decision to raise the key lending rate is likely to be made. “Unfortunately, a rate hike usually has a negative impact on Bitcoin’s exchange rate. On the other hand, it is acknowledged that this rate hike is already included in asset prices by the current market conditions, meaning that the rate drop is somehow predicted and expected. Besides, the rise will be the last sharp increase, i.e., the one where the rate will grow by more than one point. All other changes before the end of the year will be minimal. The situation in China and the dollar strengthening against all currencies, including cryptocurrencies, also has a negative impact on Bitcoin. Given all these factors, Bitcoin could hit $19,000 in September,” predicts Roman.
