The crypto market is stuck in a tight range as larger cryptocurrencies are unable to break above key levels of resistance. The sector has been mostly inclined to the downside since September when Ethereum completed \u201cThe Merge\u201d. <\/p>\n
At the time of writing, Bitcoin (BTC) trades at $19,500 with a 2% profit in the last 24 hours while Ethereum records a 3% profit over the same period. Other cryptocurrencies follow a similar trajectory during today\u2019s trading session with XRP and Cardano amongst the worst-performing assets in the sector.<\/p>\n
BTC\u2019s price moving sideways on the daily chart. Source: BTCUSDT Tradingview<\/a> The successful completion of \u201cThe Merge\u201d left the crypto market without a narrative of its own. Thus, the nascent asset class has been moving in tandem with traditional equities and major indexes<\/a>.<\/p>\n Macroeconomic forces have been dominating the price action in risk-on assets, most of crypto and equities, as the U.S. Federal Reserve (Fed) rushes to slow down inflation. The financial institution has been hiking interest rates unleashing a bear market that has rippled across the financial world.<\/p>\n In this situation, every market participant wants to know when crypto will finally bottom out. In order for this to happen, equities must find a bottom first, and according to Jurrien Timmer, Director of Macro for Fidelity, this might be close to happening<\/a>.<\/p>\n Via his official Twitter handle, Timmer compared the current situation with the 1940 to 1947 inflationary periods in the United States. The North American country was going through a period of high inflation after World War II.<\/p>\n Timmer referred to this situation as a fiscal\/monetary cocktail, the country was recovering from a major conflict with most of the world in ruins, still hurting from the massive expending and low resources. At that time, the S&P 500 saw a 30% decline.<\/p>\n Right now, this index is approaching those lows as it follows a similar trajectory. As seen in the chart below, the S&P 500 proceeded to move sideways for multiple years as inflation peaked at 19.6%. In comparison, today\u2019s inflation stood at 8.9% at its highest month-to-month metric. Timmer said:<\/p>\n The 1946-49 bear market had a nominal decline of 30% and a real decline of 46% (amid 20% inflation). It was entirely a driven by valuations. The analog suggests we are near the bottom, but a long way from the next bull.<\/p>\n Source: Jurrien Timmer via Twitter<\/p>\n Other experts expect <\/a>a similar scenario for Bitcoin and the crypto market. This might be positive news for long-term holders looking to accumulate at current levels, but not for those betting on a new bull run in 2022 or even 2023.<\/p>","protected":false},"excerpt":{"rendered":" <\/p>\n The crypto market is stuck in a tight range as larger cryptocurrencies are unable to break above key levels of resistance. The sector has been mostly inclined to the downside since September when Ethereum completed \u201cThe Merge\u201d. <\/p>\n At the time of writing, Bitcoin (BTC) trades at $19,500 with a 2% profit in the last 24 hours while Ethereum records a 3% profit over the same period. Other cryptocurrencies follow a similar trajectory during today\u2019s trading session with XRP and Cardano amongst the worst-performing assets in the sector.<\/p>\n BTC\u2019s price moving sideways on the daily chart. Source: BTCUSDT Tradingview<\/a> The successful completion of \u201cThe Merge\u201d left the crypto market without a narrative of its own. Thus, the nascent asset class has been moving in tandem with traditional equities and major indexes<\/a>.<\/p>\n Macroeconomic forces have been dominating the price action in risk-on assets, most of crypto and equities, as the U.S. Federal Reserve (Fed) rushes to slow down inflation. The financial institution has been hiking interest rates unleashing a bear market that has rippled across the financial world.<\/p>\n In this situation, every market participant wants to know when crypto will finally bottom out. In order for this to happen, equities must find a bottom first, and according to Jurrien Timmer, Director of Macro for Fidelity, this might be close to happening<\/a>.<\/p>\n Via his official Twitter handle, Timmer compared the current situation with the 1940 to 1947 inflationary periods in the United States. The North American country was going through a period of high inflation after World War II.<\/p>\n Timmer referred to this situation as a fiscal\/monetary cocktail, the country was recovering from a major conflict with most of the world in ruins, still hurting from the massive expending and low resources. At that time, the S&P 500 saw a 30% decline.<\/p>\n Right now, this index is approaching those lows as it follows a similar trajectory. As seen in the chart below, the S&P 500 proceeded to move sideways for multiple years as inflation peaked at 19.6%. In comparison, today\u2019s inflation stood at 8.9% at its highest month-to-month metric. Timmer said:<\/p>\n The 1946-49 bear market had a nominal decline of 30% and a real decline of 46% (amid 20% inflation). It was entirely a driven by valuations. The analog suggests we are near the bottom, but a long way from the next bull.<\/p>\n Source: Jurrien Timmer via Twitter<\/p>\n
\nCrypto And Global Markets Close To A Bottom, But Far From A Bull<\/p>\n
\nCrypto And Global Markets Close To A Bottom, But Far From A Bull<\/p>\n