- Experts from JPMorgan and DailyFX say crypto winter is here.
- However, other experts say the market has already bottomed out.
- Also, there is a rising inflow into stablecoins according to recent reports.
Experts from JPMorgan and DailyFX are claiming that we are in a crypto winter. However, other experts like John Bollinger disagree. The Bollinger Band technical indicator creator believes BTC has already bottomed out at $30,000.
Bitcoin reached the all-time high of $64,804.72 back in April. However, the top crypto has since fallen by almost 50% to $33,039.01 at the time of writing. Bitcoin is actually up 1.5% in the last 24 hours after testing the $30,000 resistance level. Although the top crypto seems to be rebounding, experts believe that things could get worse.
To make matters worse, the dreaded death cross finally formed on June 19. Added to the growing disturbing news from China, which has already negatively affected Bitcoin’s hash rate. Plus, a marked decline in institutional interest. These are all factors working to drive the bearish sentiment around Bitcoin. As such, these factors could drive our favorite crypto into deep hibernation.
A report by The Wall Street Journal quotes DailyFX analyst Peter Hanks stating that in the foreseeable future it will be easier to see red candles compared to green ones. The analyst also added,
I think bitcoin is certainly headed for more losses here … If it breaks [below $30,000], then crypto winter is certainly back on the docket.
So far, the $30,000 mark has proven to be a strong price support level. However, if the bearish force manages to drag the crypto below this level things could get a lot worse. In fact, such an occurrence is likely to be proof that crypto winter is indeed upon us.
JPMorgan analyst Nikolaos Panigirtzoglou also shared that Bitcoin doesn’t seem to have gained the trust of institutional investors as yet. Indeed it seems institutional investors have lost their appetite for Bitcoin as they have mostly refrained from buying the dip.
There also seems to be a steady inflow into stablecoins according to Glassnodes and Nansen reports. A trend that was last seen when Tesla announced its bitcoin buy in March. If history proves true this inflow could end up in bitcoin creating some needed buy pressure and relief.