Bitcoin and Ethereum recover from a massive crypto market crash

• Bitcoin, which plunged nearly 52% from its November highs to a low of over $33,000 in late January, has risen about 15% in the last seven days.

• Ethereum, which plunged around 55% from its November highs in late January, is up roughly 13% during the same time period.

• Goldman Sachs predicts at least four rate hikes in 2022, with the most extreme forecast coming from Shah’s own bank, which predicts seven hikes in 2022 and four more the following year.

Crypto winter is yet to come

Despite the price drop, Shah stated that his talks with people interested in crypto and digital assets increased last month, adding that his team anticipates an increase in crypto values in the Q2 of 2022 and in 2023.

Crypto and digital assets, like stocks, commodities, and real estate, are dangerous, according to Shah. Their prices are highly volatile by definition. Broader economic factors, such as the Federal Reserve’s announcement that interest rates may be raised as soon as March, can have an impact on the price of “risk assets,” and crypto is no exception.

The slight recovery is just more evidence for Alkesh Shah, global crypto and digital asset strategist at Bank of America, to declare that January was not a crypto winter at all.

As the year comes to a close, Shah predicts that more investors will take note of blockchain networks that allow apps to be developed on tops of them, such as Ethereum, Binance Smart Chain, and Avalanche. Each of these networks has its own cryptocurrency that investors may purchase: Ether, BNB, and AVAX.

Prediction from experts

Crypto will continue to see transitory price reductions for the next three to six months, he predicts, because markets haven’t fully factored in prospective interest rate hikes like the ones predicted by Shah’s bank.

Prices will begin to climb again once the crypto market, as well as other risk assets, react to that projected reality, according to Shah.

“Then, based on the fundamentals of growth and acceptance, as well as all of the new apps being built on this ecosystem, this group in particular (crypto assets) can continue to rise up higher,” says the author. 

Cryptocurrencies that has sunk tremendously since December but have taken a significant price blow in the last three weeks. Therefore, the market has recovered somewhat in the last seven days.

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Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.

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