Key Takeaways:
- Cryptocurrency prices have been falling amid the extended crypto winter
- According to venture capitalist Tom Loverro, the market slump will extend till 2023,
- Experts see the price of Bitcoin (BTC) falling under $15,000
YEREVAN (CoinChapter.com) — The latest recovery in the crypto market might not last, according to Tom Loverro, venture capitalist and former Board Observer for Coinbase (COIN).
Loverro, who is now an investor and Advisory Board Member at cryptocurrency exchange FTX, noted that Bitcoin (BTC), Ethereum (ETH), and other top crypto assets would not recover until the second half of 2023.
“The bottom will come not during this current fear & loathing phase but later, after indifference sets in, crypto is no longer making headlines, and the tourists have left . That process will take many months,”
the analyst said.
Don’t be fooled by recent bear markets
Earlier this month, the price of Bitcoin (BTC) fell below $20,000 for the first time since December 2020. The market crash also saw Ethereum (ETH), the second-largest crypto by market cap, slip under the $1000-mark.
The previous bear markets had seen prices rebound relatively earlier. For instance, the previous bear market, which took place during the Covid-19-led global market rout in March 2020, recovered weeks after the Federal Reserve pursued “quantitative easing” to back the economy.
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However, Loverro believes this crypto winter is different. Continued rate hikes by the US Federal Reserve are one of the reasons behind the bear market.
“Many VC & crypto investors suffer from recency bias, expecting a quick rebound because that’s what happened after the 2020 Covid black swan. This bear market isn’t a black swan; it’s the result of rising interest rates. So these investors will suffer until rates stabilize,”
he said.
Crypto winter to take Bitcoin (BTC) to $14K?
The price of Bitcoin (BTC) has been on a free-fall recently, caused by the extended crypto winter. However, experts believe its steep fall is far from over.
BTC trades for around $20,000 per token, over 70% below its all-time high of $69,000 in November 2021.
In a Twitter thread earlier this month, Venturefounder, a contributor at on-chain analytics platform CryptoQuant, argued Bitcoin would fall below $15,000 this year.
“In the next 670 days, BTC will capitulate in the next 6 months and hit cycle bottom ($14-21k), then chop around in $28-40k in most of 2023,”
he predicted.
Tom Loverro also believes we may see new lows coming soon, 12 months for Bitcoin (BTC) all-time high.
With a possible Bitcoin halving coming up in 2024, it remains to be seen if the crypto markets will make any significant progress until then. Since BTC dictates market movements, its performance will impact the other altcoins. But for that, the crypto winter must come to an end first.
