Fintech
The analyst expects a 15-20% drop before the next bull run
Bloodbath in cryptocurrencies? The global cryptocurrency market just suffered a 3% drop in the last 24 hours, plunging to $2.4 trillion during Monday’s Asian trading session. Bitcoin (BTC), the symbol of the cryptocurrency world, is leading the bearish race, dragging the entire market into a crash.
Dive deeper to find out what’s triggering the sell-off and what it means for your cryptocurrency holdings.
Bitcoin faces a struggle
Bitcoin, the leading cryptocurrency, closed last week at around $63,000, a critical support/resistance level that has increased concerns of further market declines. Over the past day, the price of Bitcoin fell 2.3%, trading at around $62,800 on Monday.
Analysts warn that if Bitcoin consistently closes below $63,000 in the coming days, it could test support levels above $60,000.
What future for the Altcoin industry?
Popular crypto analyst Ash Crypto predicts a prolonged consolidation phase for altcoins lasting 6-9 months before a potential surge in what is expected to be a mega altseason. However, Ash Crypto warns that if Bitcoin’s bearish sentiment persists, the altcoin market could face a significant 15-20% correction.
“ALT Mcap has broken below the mega bullish trend line. We may see a small bounce if BTC moves higher, but it looks like the alternatives market will go through one last round of capitulation, where alternatives could drop an additional 20% before the next mega season.”
Focusing on Ethereum ETFs
As attention shifts away from US-based Bitcoin spot ETFs, interest in the Ethereum network is growing. According to Santiment’s on-chain data analysis, Ethereum recently recorded its highest increase in active addresses in three months, surpassing 617,000 addresses last week.
In the medium term, speculation is growing in the wake of the upcoming listings of spot Ether ETFs approved in the United States. Similar approvals earlier this year for Bitcoin ETFs spurred bullish momentum to new highs. In particular, BlackRock and Fidelity have already launched their respective Ether ETFs in anticipation of next month’s listings.
Do you think Ethereum can stay afloat despite the cryptocurrency market correction?