We are entering a phase where anything can happen: the extreme inflation that the United States is going through and the crisis in Europe indicate that everything can change in favor of Bitcoin Investment or make the situation worse.
A strengthened dollar against the other Fiat currencies could be the respite of Bitcoin; in its BTC/USD pair, changes have been seen in the last days of July; it all depends on the direction finances take and the response of the entities in an alarming situation.
The closing of the market on Friday, July 15, was quite profitable since an increase of more than 10% was registered, a value that we had not seen for several months; it all depends on how it is written at the beginning of next week if the end will be seen of the crypto winter.
Who has better resist the crypto fall?
Remarkably, it has been seen how long-term investors have shown to remain calm, the financial scenario does not seem at all favorable for any of the participating actors, but everything that goes down must go up. The falls of Bitcoin and at least the top 10 cryptocurrencies below it have shown that the trends are like the domino effect; the financial and economic measures taken in the external environment have affected this digital market but not destroyed it.
It is necessary to analyze the previous periods where cryptocurrencies, generally, have experienced various trends, some longer than others, where they always manage to stabilize and generate changes around them. Excessive sales of crypto assets, whether Bitcoin or Ethereum, have caused oversupply, driving the market down noticeably thanks to short-term investors and their fear of losing everything.
Those who have remained calmer in the face of the crypto winter are undoubtedly the largest holders of cryptocurrencies and long-term investors who prefer to keep their digital asset units waiting for collective benefits in a change where the bulls will make them increase prices.
Forecasts for BTC after closing in positive
All those who do not support that cryptocurrencies could change the course of the world economy and finance assume that they do not have the necessary characteristics to be used as legal tender. The characteristic for which people invest in Bitcoin is because they consider it a store of value, which in such extreme stages of periodic decline may not generate the expected results; what the market has shown is that in the face of crypto winter, it subsequently always causes a solid kick to the upside.
A new economy could be established after all this world upheaval concerning finances and the economy, we are seeing how inflation is doing its thing again, and only the restrictive measures make it behave like a giant indestructible monster.
It is necessary to wait a little longer after the recent events, such as the appearance of the Mt. Gox Bitcoins and the rise in price where it could reach 21,000 out of that limit of USD 19,000 if purchases are generated. Nevertheless, the bulls and whales keep acting; the market could take an unexpected turn and end the crypto winter.
Positive rally for altcoins
The change was generated after the Producer Price Index (IPP) report. After that, the Consumer Price Index (IPC) was published, which changed the behavior of altcoins, causing a kind of relief among its users.
This behavior also arises as a response to the rebound that Bitcoin could experience in the financial market; nothing is yet established, the markets are speculative, and after so many months of experiencing losses in value, it is necessary to show a fact strong enough to change the trend.
Whales and holders alert for a possible change in trend
It may be that these essential elements in the digital financial market could be impatient with the situation of cryptocurrencies; the exciting thing is that they have not finalized closing operations; they are waiting there; it may be that the institutional whales are still tempted to sell the small ones they refuse this possibility.
Suppose these users who significantly influence the development of the financial market decide to give up. In that case, the history of cryptocurrencies could be substantially affected.
The forecasts often coincide with investors’ decisions in the financial markets, but this is not always the case. As a result, the volatility and risks of the calls are vulnerable to any circumstance that could generate radical changes. Cryptocurrencies are just establishing their financial history; it is necessary to wait for their evolution and transformation; if you want more information regarding these financial instruments, enter to Bitcoin-Prime trading system.
Alexia is the author at Research Snipers covering all technology news including Google, Apple, Android, Xiaomi, Huawei, Samsung News, and More.