It’s no secret that the virtual currency market is currently going through a period of unprecedented crisis. This disaster also applies to the classic stock market, and experts do not hope for an immediate resumption of growth.
The current situation with virtual currencies continues to cause concern, and experts do not inspire optimism. At least that’s what Russell Thomson, CEO of digital asset management company LibertyRoad Capital, expressed during an interview. In his opinion, “at the moment there are no signs of a bottom. And we need to install the floor for this market to recover.” In other words, the situation on the market will not immediately improve, it may even worsen. For example, Bitcoin has practically fallen by 70% in 18 months. Just like Ethereum, which experienced a -76% drop in just 4 months.
Markus Sotiriou, an advisor to digital asset brokerage GlobalBlock, believes that the inflation seen earlier this month in the United States is one of the main causes of the cryptocurrency crisis. It should be noted that Uncle Sam’s country has just overcome an inflation rate of 8.6%, which is a record for the last 4 decades. The conflict in Ukraine is partly behind this price hike. An increase that does not spare any area in the world, since inflation in Europe is currently 8.1%.
Cryptocurrency market will collapse, experts say
To make matters worse for the stablecoin crash, Celsius, the crypto lending giant, has not allowed any transactions since June 13th. Marcus Sotiriou is alarmist and warns: “Cryptocurrency markets are collapsing in part due to the risk of insolvency of one of the largest lending platforms Celsius after it was widely believed that they were irresponsible with client funds. “.
So, the question that all investors are asking right now is when will the cryptocurrency crisis end? Difficult to answer because positions agree that it won’t happen now, but differ on the exact date of resumption.
Thomson needs the stock market to hit its lowest point. Therefore, he expects Bitcoin to trade against $17,000 before the real click occurs. Marcus Sotiriou is less evasive and expects a recovery by 2023. The same story with BuyUcoin crypto exchange boss Shivam Thakral, for whom the future of cryptocurrencies will depend on the relaxation of strict monetary policy.