Demirors of CoinShares predict a tense bearish storm for Bitcoin, Ether, Cardano, and Solano in the near future
The Chief Strategy Officer of CoinShares, Meltem Demirors, has projected a longer-than-anticipated winter for Bitcoin, Ether, Cardano, Solano, Polkadot, and other cryptocurrencies, despite the markets’ efforts to find a soft landing.
Monday on CNBC, Demirors remarked that the crypto market was still a significant distance from an inflexion point, stressing that the current macroeconomic indications might place Bitcoin in a protracted dead zone.
“CoinShares plans to remain there for a while. There are no near-term catalysts for upward. Meltem told ‘Squawk Box host Andrew Ross that bitcoin has not yet been seen during a recession. Expect more suffering for tech stocks, growth, and crypto in the future.
According to her, despite the crypto market losing more than half of its gains, there are still a large number of off-chain activities, such as OTC contracts, that might spark a last collapse before Bitcoin reaches a bottom.
“We saw a number of liquidations that had a significant effect on the market- we’re talking about 10, 20, 30 billion dollars that disappeared overnight,” she said. “We haven’t seen the full impact of that since most firms in this area are not publicly listed.”
In the second half of 2022, the global crypto market capitalisation dropped from its November high of $3 trillion to less than $1 trillion. Bitcoin has dropped almost 70% of its value since reaching an all-time high, while other cryptocurrencies have lost up to 85%. Numerous factors, including the Russo-Ukrainian War, the collapse of TerraUSD, and the severe liquidity crisis that plagued DeFi loan businesses last month, exacerbated the losing run that started in November of last year.
In the meanwhile, Bitcoin continues to trade against the Dollar Index (DXY), which has reached its highest level in 20 years due to growing inflation. This has historically been a negative indicator for Bitcoin.
Last week, the expert revealed the Bloomberg Galaxy Crypto Index, which he said was “approaching a similar decline as 2018’s low,” indicating a likely BTC reversal. “Bitcoin might be one of the greatest bull markets in history at a reduced price to start 2H,” he tweeted. As of this writing, Bitcoin is trading at $19,878 following a daily decline of 3%.
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