South Korean researchers say the Bitcoin and altcoin winter will end before the end of the fiscal year, but they speculate that the US FED’s attempts to support the US economy may continue to impact the crypto markets in the meantime. Here are the details…
Bitcoin and altcoin comment from the crypto money exchange
The research was conducted by local exchange Korbit and reported by Maeil Kyungjae. The exchange’s research unit has predicted that a “prolonged” crypto winter, characterized by low or stagnant Bitcoin (BTC) and altcoin prices, will continue for many more months, but will eventually end before the end of the fourth quarter of the current fiscal year. Researchers looked at trends in previous crypto winters and paralleled the crash that began in late 2018. Jeong Seok-moon, head of Korbit’s research unit, said:
This market drop is similar to the ‘third crypto winter’ that the markets experienced between the end of 2018 and the beginning of 2019.
Jeong noted that the Fed’s “tightening” monetary policies led to a decline in late 2018. He said this drop is different from the “first and second” crypto winters, which are “caused by internal factors in the crypto-asset markets.” Therefore, he added that those who “anticipate the timing” of the crypto market recovery would do well to pay attention to the predictions about “when the Fed’s monetary policy stance might change.”
Korbit says inflation will ease
Korbit analysts say that inflation will “gradually ease” in the second quarter of the year. With the positive news from the ISM manufacturing index, they expect “change” to occur in the fourth quarter. Researchers at Korbit rival Bithumb agree. As quoted by Lee Mi-sun, head of Bithumb’s own research unit, Hanguk Kyungjae stated that the Fed’s rate hike policy will likely be short-lived. He announced that the Fed will start reducing interest rates again before the end of the calendar year. Lee came to the following conclusion:
Bitcoin prices will bottom out in the second half of this [calendar] year. It will show signs of stability as the end of the year approaches.
What is the latest situation in the market?
Bitcoin and Ethereum drew new monthly highs before pulling back slightly. The ETC show keeps playing. Bitcoin soared to a one-month high of almost $23,000 before stopping there. While most altcoins are also calmer on a daily scale, ETH climbed just over $1,600 an hour ago. NEAR and ETC are currently among the top performers.
Bitcoin has been on a roll since the price plunge to below $19,000 on July 13, driven by record-breaking US inflation figures. The asset bounced from this week’s low and reclaimed $20,000 in the next few days. Unlike the previous two weekends, this time BTC actually gained quite a bit and was close to $22,000 as it ended on Sunday.
Monday started off with a brief pullback below $21,000, but the coin reversed its trajectory shortly after and hit a new monthly high above $22,500. In the last 24 hours, Bitcoin has climbed above this line several hundred dollars. It came just inches away from $23,000. But as of now, it has pulled back over $1,000 and is sitting below $22,000. However, its market cap is still well above $400 billion, but the dominance over altcoins has taken another hit, dropping to 41.2 percent.
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