Top Valkyrie Analyst: Bitcoin’s Decline Will Continue For A While
Bitcoin Recovery has Started
On a recent talk show, Josh Olszewicz, head of research at Valkyrie, said the road to recovery for Bitcoin is a long one. The bear market is here to stay but rather than panic, I will advise people to take advantage of the downtime, strategize and build up their portfolio. The road to recovery is going to be a marathon not a sprint.
This year, Bitcoin (BTC) has decreased by more than 37%, once more dropping below $20,000.
One researcher,still believes there might be even more negative effects.
According to Josh Olszewicz, head of research at investment management Valkyrie, volatility needs to decrease before bitcoin’s price can stabilize at the low point in the near future.
“For example, the 200-week moving average, which is around $22,000, can be examined.
Olszewicz remarked, “We can look at realized price, which is the average price of coins that have moved on-chain and is now approximately $23,800. If it happens this year, this [movement to strike bottom] will likely take at least the entirety of Q3, and maybe Q4 as well.
Other elements, like the U.S. Federal Reserve boosting interest rates, are also influencing the market performance of bitcoin, according to Olszewicz.
He suggested that the slump may be being driven by institutional investors. Olszewicz stated that on-chain movements typically have a value in the tens of thousands of BTC. “Institutional-size flows are definitely leading the majority of volume,” he added.
Nevertheless, Olszewicz claimed that individual traders continue to drive market activity more so than institutional investors. He observes that folks just learning about cryptocurrencies are now jumping in during this bear market to “see whether they can survive” and test the waters.
The cycle might reoccur if people once again learn about bitcoin for the first time, Olszewicz added. “We’ve seen this rise and swell before.”
Since 2018, there have been an average of over 27 million bitcoin wallets, up to over 41 million now. We’re seeing a lot of folks not just remaining here, but also getting re-excited about what’s happening in the space, he continued.