strategies for dealing with the chaotic crypto market
Navigasi - The crypto market went through a difficult phase when there was a decline in the value of Bitcoin and many of the leading altcoins. In fact, now the price of Bitcoin has fallen 60.11% from the price at the end of 2021 which was US$ 46,305.45 to around US$ 18,777.78 today, Sunday (19/6) at 08.30 WIB.
|strategies for dealing with the chaotic crypto market|
In fact, Bitcoin had touched the level of US $ 17,721.69 per BTC, or the lowest since last November 2011.
Other crypto assets have suffered the same fate, with Ethereum down more than 70%, BNB down 65%, and SOL and ADA both down by 80%. Meanwhile, the crypto market capitalization value is now only US$ 840 billion. In fact, at the end of last year, the capitalization was still US$ 2.19 trillion.
Tokocryto trader Afid Sugiono said that rising interest rates would reduce investors' interest in storing their assets in risky assets such as crypto assets. Moreover, investors are currently worried that the Fed will continue to raise its benchmark interest rate and bring the US economy into a recession. Thus, investors choose to stay away from crypto assets.
Under these conditions, retail and institutional investors tend to choose traditional financial institutions or banks to store their assets.
This will clearly have an impact on crypto market conditions which will lose trading volume in the future.
According to him, even in terms of market movements, there is not a single sign that gives a bullish signal, both in terms of technical analysis and other sentiments. So far, only the Fed's monetary policy easing has allowed some liquidity to flow into financial markets, thus fueling the next crypto rally.
“If the bear market persists, Bitcoin price could drop and try to continue the downward trend to the next support level at US$ 17,500 and then US$ 16,000,” said Jony.