The fear and uncertainty in the crypto money market deepens with investors’ uneasy steps and creates more fluctuation expectations. Bitmex founder Arthur Hayes claimed that the current conditions reminded the rise of 2022. According to Hayes, global economic problems and strict monetary policies prepare the ground for central banks to turn to money printing. This development can lead to a strong increase in crypto currency values.
Fear and uncertainty
The uncertainty felt in the crypto currency market reminds the energy of the last quarter of 2022. Hayes points out that the rise trend experienced at that time was shaped by the purchase opportunities fed from the panic atmosphere. Currently, investors are concerned with inflation data and geopolitical voltage news after each macro data release is concerned that prices will fluctuate even more harshly. This uneasiness can lead to panic sales, and then sharp response purchases are likely to be seen. Analysts say that the psychology of investors will be tested harshly with these ups and downs.
Hayes says that existing economic problems can force the central banks to additional money. The US Federal Reserve’s balance sheet expansion steps can be preferred to meet liquidity needs as in the past. Investors predict that this process will bring a serious breath to crypto money prices. Of course, the realization of this scenario depends on economic indicators and policy stance.
Role of Bitcoin Dominance
Hayes, Bitcoin $97,063.27 He argues that his dominance may rise to 70 %and that it will lead to transformation in investor portfolios. When the value of Bitcoin reaches around $ 150,000, the risk appetite rises and the orientation to alternative assets can be accelerated. Technical indicators show that Bitcoin supports the long -term trend line, while volatility in the short term seems inevitable. This scenario can ignite the wick of Altcoin rally. Market participants are also waiting for the encounter with small -scale snow sales after the increase in dominance.
Orientation to alternative assets can revive a new subcoin season. After the Bitcoin dominance rose in the past, earnings of up to 100 %were recorded in Altcoins. According to Hayes, investors will first receive profits from Bitcoin and tend to distribute the resulting cash to more risky crypto currencies. Thus, the crypto money market will be reshaped and interest in different token projects will increase. Of course, this process will vary according to the risk tolerance of investors.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
