The movements of the American financial market have shown how the constant measures taken by the government and the Federal Reserve have contributed to the economy being compressed with a more significant impact, taking in its wake the indices and shares of the stock market and also the cryptocurrencies.
Faced with this situation, many investors have sold their digital assets, which is why they represent greater risk since they assume greater volatility than traditional financial assets. You may also consider knowing the aspects of Bitcoin on the link provided.
The collapse of cryptocurrencies has been remarkable and tends to drive away investors looking for investments that guarantee profitability and a much more conservative level of risk.
Possibly with the new movements of the crypto market, it can be connoted that perhaps the fear of risk in investments with digital currencies is beginning to give way, which could be considering a change of position regarding digital currencies.
Although the symptoms that the United States economy has shown are not encouraging in terms of the change in the trend of Bitcoin and cryptocurrencies, the measures have been drastic to combat inflation, but it seems that it could win the fight and enter a recession which could impact the crypto market on a large scale.
Aspects to consider for a possible correction
As it happens when preparing a recipe, it usually happens with the evaluation and analysis of the market to determine if a particular economy will enter a recession or not.
There are various aspects to consider regarding the market behavior and its possible change, leading the economy to a recession that would, of course, have a global impact.
One of the main aspects is the one that revolves around the labor market, where job losses are generated; there is no doubt that the recession is coming, and that is where people will begin to look for options to obtain additional income.
Once these market feelings change, the position of individuals and companies towards crypto investments could change, and it is where a correction of the shift in the Bitcoin curve would not be illogical.
We must wait a reasonable time for this economic and financial scenario to be generated. To date, Bitcoin has exceeded its barrier of 20,000 dollars, which could indicate a progressive and not radical upward trend, trying to avoid excessive volatility that generates worse results.
When cryptocurrencies were created, it was considered that macroeconomic factors could not have an impact on them; this year, the rise in rates, high inflation rates, the increase in oil prices, and a war in progress have left more damage than Benefits.
Token prices aim to continue to rise.
In recent weeks, it has been seen how the prices of cryptocurrencies have increased, staying within a margin that could represent two scenarios, the first breaking the floor that already brings $24,000 and starting an upward trend.
The conditions are perhaps not the most optimal, which undoubtedly makes a change in trend more complicated; in the second case, there is the possibility that the crypto-winter will extend until the economic outlook stabilizes.
It is impossible to establish a specific period for changes to occur in the cryptographic market; many analysts maintain the position that this second half of the year will maintain a downward trend; what do not agree are the lapses of the phases of Bitcoin.
The operations with stablecoins and cryptocurrencies have increased by more than 10% in the last month, not bad for having developed such an extensive crypto winter.
Market sentiments are crucial.
The crypto assets market has had significant falls; the most surprising thing is that the interest of its investors has not changed, perhaps they have withdrawn a little, plus the technology and capabilities of cryptocurrencies have not stopped attracting followers.
We are going through a stage of constant news and analysis on bullish trends, without leaving aside the predictions where they assume that Bitcoin would reach astronomical values.
It is essential to keep your feet on the ground and consider the most consistent indicators to establish a trend and estimated price as close to reality; it may not reach the expected 70,000 dollars, but perhaps depending on the market improvement, it could reach USD 50,000.
The wait is desperate, but the financial markets require patience, six months have already passed, and a gradual evolution that infers a possible rise in the market is just beginning to be seen.