Crypto Market Hasn’t Bottomed Yet, Analyst Says

Notable crypto market analyst Willy Woo has just issued an appraisal on Bitcoin’s performance in the coming months or maybe year.

The analysis shown that the coin still hasn’t reached its lowest point.


“In terms of max pain, the market has not felt the same pain as prior bottoms. The blue line (supply of profit by @glassnode) shows this. So far, we have reached just 52% coins that are underwater. Prior bottoms were 61%, 64%, 57%,” Woo said on his recent tweet detailing his analysis.”

Crypto Market and its Relationship with Stocks

Bitcoin is highly associated with the S&P 500 Index which fell after the US Federal Reserve’s CPI announcement earlier this week. This announcement revealed that 8.3 percent was the highest annual inflation rate.

This is more than the 8% expected rate for the cryptocurrency market. Markets are now filled with fear and despair as a result of this tragedy. The market turmoil traders and investors experience isn’t the end.

The central bank enacted policies that boosted the economy with fresh cash early on in the global health crisis. Quantitative easing is also known as this. The Fed may consider a 1 percent increase in interest rates due to rising inflation.

This price rise will, as in June’s case, have negative consequences for the whole crypto market. Following the Fed’s decision to raise interest rates, both the stock and cryptocurrency markets experienced a string of liquidations.

Glassnode chart

The increase in inflation and fears of recession precipitated this sell-off. The Federal Reserve may reintroduce quantitative tightening to tackle persistent inflation.

Cryptography: The small percentage matters

A further 1% increase could cause the financial markets to crash. Woo said that history doesn’t have to be repeated. It is also possible for it to have already started in some way.

The analyst previously stated that the current low is only at 52 percent, compared to 60+ percent in recent history. This is the bottom right now, so traders and investors will be happy.

As of this writing, the S&P 500 was trading at $3,946. If the correlation between Bitcoin and the S&P 500 Index remains, any price movement, favorable or negative, will have an impact on both the broader stock and crypto markets.

Do you think 52% should be considered the absolute minimum? It will be time to see if the Feds increase interest rates. The absolute lowest currency point will occur if the Federal Reserve increases interest rates.

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