The market valuation for all cryptocurrencies decreased by 24% to $770 billion between November 8 and 10. Asset values rose 16% as fear receded and forced future contract liquidations lessened.
Furthermore, according to Mike McGlone, Senior Macro Strategist at Bloomberg Intelligence, Bitcoin (BTC) could return to the values of July earlier in 2020.
With due diligence looming over the asset class, there is a lot of panic in the cryptocurrency community right now, and the future looks gloomy for altcoins. Experts like Mike and others are constantly cautioning investors to remain vigilant before purchasing any tokens right now.
Meanwhile, Mike pointed out that in the coming weeks the bitcoin price could drop by 39% from its current level and retrace back to the $10,000 support level.
McGlone’s Timeline
To provide clarity to the eager market participants, the macro specialist has now emphasized the difficulties risk assets will face in the future.
As expected, he added that BTC and other coins are likely to see a carnage in the future due to the current capitulation period.
“Capitulation sell stops” might be triggered in other markets that have been under pressure this year if Bitcoin and other crypto assets were to collapse.
Then, he pointed to the fact that, as of November 9, the larger risk-asset regression of 2022 had already become apparent. Sadly, the rest of the trading session, however, could set the stage for 2023, in which bitcoin acts as one of the fastest horses in the race and as a top leading indicator, breaking support and hitting the $10,000 range. takes the risk of returning.
The BTC trend, on the other hand, is currently trading at $16,362, down by almost 20% from the month’s high of $21,480 achieved last week. As a result, this can be interpreted as a clear sign that the prices may drop as predicted.
According to the senior macro strategist at Bloomberg Intelligence, the failure of the FTX cryptocurrency exchange and the damage to the reputation of Sam Bankman will have a significant impact on macroeconomic conditions. Investor confidence has been shaken, which has had a negative impact on cryptocurrencies.
The Bottom line
Due to cryptocurrency frauds and the current political unrest, the largest asset class has lost its allure in the community, and a massive dump has made the situation worse. It will be intriguing to see what the trading trends of 2023 bring.
