Sunday, October 1

Experts agree that the cryptocurrency market is headed for a “major correction” – DiarioBitcoin

For Angel Di Matteo @shadowargel

Figures such as Peter Andersen and Mike McGlone agree on this thesis, although there is disagreement on what exactly this would represent for the crypto market. Is it loss or consolidation of the sector?


After the fall seen throughout the month of January and this especially pronounced drop that we had today, January 21, several experts consider that the cryptocurrency market could be facing a significant correction, so the forecasts could well not be so optimistic for the coming days.

Correction in the crypto market?

Faced with the reasons to which this fall in the crypto market would be associated, the director of information for Andersen Capital Management, Peter Andersen made special mention of the changes to be implemented by the US Federal Reserve (FED) throughout this year in terms of its support policies in the framework of the pandemic by COVID-19, and the repercussions that this would have on the price of the main exponents of the market.

In that sense, Andersen highlighted the drop seen in the market capitalization of cryptocurrencies and the reduction in the price of cryptocurrencies. Bitcoin Y Ethereum today, all this while the FED consider a possible revision to the idea of ​​a digital dollar (CBDC). According to the analyst, this could lead to a major correction of the crypto market:

“I think cryptocurrencies are headed for a major correction. I don’t know when, but hardly anyone understands the math behind it… You ask most of the leaders who boast that cryptocurrencies are the next best investment option. If you ask more details about that, they really stumble in terms of trying to tell you what the fair value is. Because this one is totally different, if I dare say, it depends on the asset class. We need a lot more work on that and a lot more information available for analysis.”

divided opinions

While Andersen is pessimistic about the market’s reaction to the US outlook, senior commodity analyst for Bloomberg, Mike McGlone does not deny the bad effects but highlighted that the volatility seen in the price of these assets so far in 2022 is an interesting indicator, which highlights the importance of Bitcoin within the current revolution generated by digital currencies.

In McGlone’s opinion, the volatility recorded Bitcoin Y Ethereum They also put on the table the importance of these cryptocurrencies in transactions based on the US dollar (USD), a fundamental indicator to evaluate the growth of the industry:

“Some purges in the crypto asset gluts in early 2022 show the fundamentals of the three stalwarts: Bitcoin, Ethereum and the proliferation of crypto dollars. The nascent dollar transaction technology is an important part of the digital asset revolution.”

Put more simply, the volume of commercial operations that circulate in the markets of Bitcoin Y Ethereum show a growth in the economy of the sector, especially in terms of the use of cryptodollars.

Not only the crypto sector is reeling

Although the most visible thing for those who make life within this ecosystem is the impact on cryptocurrencies, the truth is that several companies are also being affected both inside and outside the digital currency sector.

In the case of companies that work in this sector, entities such as Microstrategy Y PayPal They are also capitalizing on not-so-positive results associated with the drop in major cryptocurrencies, closing yesterday with losses of 3% and 0.16%, respectively.

Outside the crypto realm, the index NASDAQ 100, made up of the largest non-financial companies listed on the stock exchange, fell 1.3% at the close of yesterday and continues with the trend seen in the last two months.

However, in this last case, the negative performance seen in said index seems to go hand in hand with the emergence and rebound of cases due to COVID-19 for the variant Omicron, which is having a much faster rate of spread than the first strains of the virus.

On the other hand, the index S&P500 It is also going down in the last 24 hours, closing yesterday with losses close to 1%.

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Angel Di Matteo version / DailyBitcoin

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WARNING: This is an informative article. DiarioBitcoin is a means of communication, it does not promote, endorse or recommend any investment in particular. It is worth noting that investments in crypto assets are not regulated in some countries. May not be suitable for retail investors as the full amount invested could be lost. Check the laws of your country before investing.