In the past few months, volatility has been the name of the game, but experts say that may be about to end.
After weeks of high volatility, the market is on the rise, with steady gains over the past week as Bitcoin broke through US$44,000 for the first time since March 3.
There were double-digit gains for Ethereum and Solana on Friday Asia time, as well as a 10% increase for the market leader, Bitcoin.
One of the strongest performers this week was Cardano, which gained almost 40% to trade at US$1.16 at press time, its highest point since February.
After a market cap peak at over US$3 trillion last November, a series of global shocks have seen crypto prices drop roughly 40%, though experts tell Forkast that it may be on the mend.
Goldman Sachs became the first major U.S. bank to conduct an over-the-counter option trade in cryptocurrencies. The bank should do so.
Do Kwon, the founder of Terra, said it was planning to buy US$10 billion worth of Bitcoin.
The long-term view of the asset is impacted by that kind of news. The managing director of the Australian exchange told Forkast that the perception of a reserve asset is growing.
Miller said that the inflation concerns were still in the market and that there was no reason for people to worry about a hedge against it.
“The hedge narrative for Bitcoin still remains true,” Miller said. “It may not have performed as strongly as some other like gold in the very, very short run. But in the medium to long run, Bitcoin is a very high-performing noncorrelated asset class.”
d’Anethan told Forkast that macro markets have begun to improve recently, as investors are used to the state of tensions in the Middle East. The Federal Reserve has raised the target range to fight inflation.
“It’s created a risk-on atmosphere where investors are happy to put capital to use rather than standing on the sidelines,” d’Anethan said. “And that definitely includes crypto allocation, both from retail and institutional players.”
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