Bitcoin traders say more dips, dips and sideways price action expected in BTC this summer

Discussions about the state of the crypto market have been the main headlines over the past few weeks as the non-crypto-native media has lashed out at Bitcoin (bitcoin) and DeFi investors invest in assets with no fundamental value. Meanwhile, crypto-savvy analysts and traders have been eyeing charts for clues as to when the market has bottomed and reversed.

Novice investors are clearly nervous, some predict The demise of emerging asset classesbut for those who have had multiple cycles, this new bear market is just another wildfire that will ultimately lead to healthier ecosystems.

What’s next for the crypto market is the subject of an in-depth discussion with Cointelegraph contributor Crypto Jebb and independent market analyst Scott Melker. The two chatted about their views on why Bitcoin’s value proposition remains strong and the top cryptocurrency’s price action moving forward.

Here are some key points discussed by Crypto Jebb and Melker.

Bitcoin is being used as intended

Traders focused mainly on Bitcoin’s spot price and lamented that it did not act as an inflation hedge as many had promised, but Melk noted that its performance was largely dependent on the country and economy of where an individual lives. situation.

Bitcoin could fall sharply in dollar terms, but compared to countries like Venezuela experiencing hyperinflationor Nigeria with its massive unbanked accounts, BTC provides a way for people to protect the value of their funds and transact in an open financial system.

One of the biggest features Melker highlights is that Bitcoin is the first real asset that allows people around the world to opt out of the current financial system if it doesn’t work for them.

According to Crypto Jebb, Bitcoin is thermodynamically sound, which means that he defines Bitcoin as an asset that holds energy put into the system and does not “leak” out through factors such as inflation.

Where will the market go?

Regarding the future of the market, Melk made sure to stress that while cryptocurrency adoption may not seem fast to those who have been in the market for years, “Bitcoin adoption is faster than the internet. It’s an absolutely parabolic curve. hockey stick curve.”

Both Crypto Jebb and Melker said the paradigm shift to investing in cryptocurrencies will take more time because people are so used to investing in things like 401k or Roth IRAs and most investors are trained to fear risk.

Addressing critics who may point to bitcoin’s volatility as a core reason to avoid cryptocurrencies, Melker highlighted the stock market’s recent struggles, citing the underperformance of stocks such as Netflix, Facebook, PayPal and Cathie Woods’ ARK fund.

Melk said,

“Last month I believe for the first time I saw research from Messari showing that there is no one place to basically put money into an asset class and store any type of value. If you keep cash, you lose 8% of your purchasing power.”

related: Deutsche Bank analyst sees Bitcoin recovering to $28,000 by December

Expect more downside in the near term

According to Melk, the market is not doing well right now, and in the short term, it’s important to remember that “trend is your friend” and there could be further declines.

That being said, Melk said there are a number of upcoming developments that could help the market out of its trough, including the Fed’s tightening cycle, which has historically put pressure on asset prices in the first three quarters of a tightening cycle until the market adjusts to a new level. reality.

Melk said,

“My best guess is that we had a very choppy, boring low-volume, low-liquidity summer. Maybe we’ll make new lows, or maybe we’ll just go from $175k to $22k or $23k or something like that … and then we really start to see what the market looks like at the end of the year.”

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The views and opinions expressed here are those of the author and do not necessarily reflect the views of Every investment and trading move involves risk and you should do your own research when making a decision.