Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
In an ever-evolving landscape of cryptocurrency news, one perspective emerges with a glimmer of optimism amidst the recent downturn. This perspective belongs to Nikolaos Panigirtzoglou, a prominent analyst at JPMorgan. Those who closely monitor Bitcoin’s price movements may have been alarmed by the more than 17% decline over the past two months. However, Panigirtzoglou contends that the silver lining is nearer than it seems.
His insights offer reassurance to crypto supporters. He asserts that the decline in Bitcoin’s price, the leading cryptocurrency globally, was primarily driven by the liquidation of numerous long positions. This occurred as enthusiasm surrounding the anticipated approval of a Spot Bitcoin ETF began to wane. Nevertheless, Panigirtzoglou suggests that the period of unwinding long positions is nearing its conclusion. This indicates that the cryptocurrency market may not have much further to decline in the short term.
It is important to recognize that Bitcoin is not the only asset facing difficulties. The technology sector has encountered various issues, including concerns regarding China and increasing real yields in the United States. For instance, the Nasdaq Composite Index is currently down approximately 7.0% from its recent peak.
Related Posts
While Panigirtzoglou points to recent encouraging developments in the cryptocurrency sector, such as PayPal Holdings introducing its own dollar-pegged stablecoin and Coinbase Global Inc. launching “Base,” he also notes the prevailing skepticism among investors. This caution is partly due to the Securities and Exchange Commission’s commitment to contest the recent Ripple ruling. This potential legal battle, with outcomes likely postponed until next year, introduces a new layer of legal uncertainty into the Bitcoin landscape. Consequently, the cryptocurrency market remains vulnerable to any interim fluctuations.
Compounding the situation, Federal Reserve Chair Jerome Powell addressed the Jackson Hole symposium on a recent Friday, alluding to potential future interest rate increases. This development, along with the absence of immediate plans to reduce rates, could represent another twist in the cryptocurrency narrative.
In conclusion, the Bitcoin sector remains as unpredictable as ever. However, with analysts like Panigirtzoglou suggesting a possible calm after the turmoil, digital currency advocates may find a glimmer of hope on the horizon.
The post Bitcoin’s Decline: Is the Storm Finally Passing? appeared first on BitcoinWorld.
