The price of Bitcoin may have bottomed out and is even getting back in sync with the US stock market trend. Holloway predicted some possible swings to the upside or downside, with fewer sharp drops.
The crypto market has suffered the highest losses over the last six months. After reaching a market capitalization of USD 3 billion in Mid-November, the drop reduced that figure to USD 886 billion, according to CoinGecko.
The Worst Half of the Year the Crypto Market Has Had
This first half of the year has been the worst in the history of the crypto market. For example, the price of Bitcoin (BTC) has fallen by 58.8% from the beginning of January. Its second-worst drop occurred in 2018 when it fell by 54.7%.
However, other companies and projects have also suffered the consequences of the worst crash ever seen. Terra (LUNA) lost almost all its capitalization, leading them to take an emergency measure consisting of launching LUNA 2.0 (LUNC).
Another affected project has been Celsius, one of the leading crypto lenders in the market. They had to suspend withdrawals since they could not meet the demand from users requesting their money. The same has happened with other platforms, but this will continue further.
Besides, the law has fallen upon various crypto hedge funds for defaulting on their debt payments. For example, Three Arrows Capital received lawsuits from creditors for not paying them.
What Investors Should Expect for the Next Half of the Year
It is hard to determine what could happen in the crypto market from July to December 2022. Those who have been investing in the crypto market for years know that the crypto winter is starting. There is a predominant bearish trend during this period.
Therefore, it is virtually impossible to predict what will happen accurately in the next half of the year. However, the price of Bitcoin may have bottomed out as the selling pressure has decreased considerably. It is even getting back in sync with the US stock market trend.
Erin Holloway, the president of Prime Trust, is among the many experts who have recently talked about seller fatigue. She said that many people have already rebalanced their portfolios after the sell-off.
The leader of that company predicted there might be some swings to the upside or the downside, with less sharp drops. She added there would be volatility to the upside or the downside until the current trend ends.
The analysis by some short traders still suggests that the price of Bitcoin might drop even further. According to their projections, BTC could reach a new bottom at around USD 13,000.
BTC is trading at around USD 19.08 and has accumulated a 1.2% loss over the last 24 hours. While its daily trading volume is above USD 12.92 billion, its market capitalization is about USD 364.23 billion, according to CoinGecko.
Ethereum (ETH), the second leading cryptocurrency in the market, could release its version 2.0 in the short term. In addition, The Merge upgrade might occur in the coming months, thus raising motivation among the bulls. That may spark a new wave of euphoria in the market.
By Alexander Salazar