empty
25.01.2022 05:02 PM
UBS bank warn onset of "crypto winter" despite resumption of investment flows in crypto funds

Investors in the cryptocurrency market have lost all hope of restoring quotes in the past two weeks. However, hope appeared when no one believed in it anymore. This phrase fully reflects the current situation in the cryptocurrency market. Bitcoin followed the local SPX and NASDAQ bullish momentum and hit $37.5k. Following BTC, the altcoin market also showed a slight increase, which resulted in the growth of the total capitalization of cryptocurrencies by 7% to $1.69 trillion.

Thanks to the rebound of the main digital assets, the question has again appeared on the agenda: is it worth waiting for a trend reversal or will Bitcoin drag the entire market into a bear den? Experts from Switzerland's largest bank UBS gave an answer without waiting for the question. According to analysts, Bitcoin and the cryptocurrency market are moving towards a "crypto winter " that could last several years.

The fate of Bitcoin is in the hands of the Fed

Bank representatives voiced a key factor contributing to the further fall of Bitcoin. It lies in the position of the Fed and the increase in interest rates, due to which the first cryptocurrency will become less attractive to institutional investors. This statement is debatable as the value of Bitcoin is not limited to being an alternative to gold and fiat. In the next two days, the Fed will give a detailed commentary on digital assets, and the market reaction to this will be the key to understanding further processes in the crypto market.

This image is no longer relevant

Indeed, the rise of BTC in the last bull cycle of 2020-2021 was tied to government stimulus programs. Given the catastrophic rise in inflation, the Fed decides to shut down the printing press and raise rates. JPMorgan and Goldman Sachs experts believe that the Fed will raise interest rates at least twice in 2022 in order to effectively counter inflation. These decisions will be painfully received by the cryptocurrency market and bitcoin.

Bitcoin is close to a trend reversal

Despite the pessimistic statements, Bitcoin holds a key support zone at around $33k. Moreover, for the first time in six weeks, there is an influx of funds into cryptocurrency funds, which can also be a signal of a "thaw." Major players in the stock markets are returning, and the first among them was Rothschild Investment, which bought more shares of the Grayscale Bitcoin trust. The third largest BTC wallet is also on the alert and has acquired 160 coins today alone

This image is no longer relevant

All these factors indicate a possible reversal in the price of the bitcoin. The key support zone has held out, major players are returning to the market, and the overall capitalization is growing. Bitcoin is approaching the point of no return, which will be the Fed meeting. Growth of major indices ahead of Powell's speech speaks of the optimistic mood of the market.

If expectations are confirmed and the cryptocurrency breaks through the important resistance level of $35.5k, then this will become a signal for the entire market and start a cycle of accumulation and recovery. Otherwise, we should expect a breakdown of the long-term support line at $33k. In the event of a decline, the next key area of resistance will be the yearly low at $28.7k. Its breakdown will mark the onset of winter in the cryptocurrency market.

This image is no longer relevant

Seleccione el marco de tiempo
5
min
15
min
30
min
1
hora
4
horas
1
día
1
s.
Gana con los cambios en el valor de las criptomonedas con InstaForex.
Descarga MetaTrader 4 y abre tu primera operación.
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    UNIRSE AL CONCURSO

Recommended Stories

Análisis del par BTC/USD. El 23 de mayo. Otro pump del bitcoin

El conteo de ondas del gráfico de 4 horas para el instrumento BTC/USD se ha complicado un poco. Hemos visto una estructura correctiva bajista que finalizó su formación cerca

Chin Zhao 11:26 2025-05-23 UTC+2

Recomendaciones para operar con el Bitcoin el 23 de mayo según el sistema ICT

El Bitcoin continúa con un crecimiento anómalo y extremadamente no técnico, sin una sola corrección o retroceso. En poco más de un mes, el «oro digital» se ha encarecido

Paolo Greco 07:20 2025-05-23 UTC+2

Recomendaciones para operar con el Bitcoin (BTC) el 21 de mayo según el sistema ICT.

El Bitcoin sigue subiendo de forma inusualmente no técnica y sin una sola corrección o retroceso. Recordemos que el Bitcoin ha subido más de $31 000 en poco

Paolo Greco 07:12 2025-05-21 UTC+2

Análisis del par BTC/USD. El 20 de mayo. Nada puede desviar al Bitcoin de su camino

El análisis de ondas del gráfico de 4 horas para el par BTC/USD se ha complicado en los últimos meses. Hemos visto una estructura correctiva descendente que finalizó cerca

Chin Zhao 07:36 2025-05-20 UTC+2

Recomendaciones para operar con el Bitcoin el 20 de mayo según el sistema ICT

El Bitcoin mantiene una dinámica poco técnica, aunque se observan los primeros indicios de corrección. Recordemos que el Bitcoin ha subido más de $31 000 en poco

Paolo Greco 07:35 2025-05-20 UTC+2

Recomendaciones para operar con el Bitcoin el 19 de mayo según el sistema ICT

El Bitcoin sigue realizando movimientos poco técnicos, pero empieza a mostrar los primeros signos de una corrección. Recordemos que el Bitcoin ha subido $31 000 en poco

Paolo Greco 07:26 2025-05-19 UTC+2

Recomendaciones para operar con Bitcoin el 16 de mayo según el sistema ICT

El Bitcoin ha subido $31 000 literalmente en un mes, sin tener razones de peso para ello y sin mostrar una sola corrección o retroceso. Incluso ahora, después

Paolo Greco 07:25 2025-05-16 UTC+2

Recomendaciones para operar con Ethereum (ETH) el 16 de mayo según el sistema ICT

Ethereum sigue estrictamente la trayectoria del Bitcoin. La "segunda criptomoneda" continúa su ascenso, que en la última semana se ha convertido en un vuelo propulsado. Sin embargo, esto

Paolo Greco 07:25 2025-05-16 UTC+2

Recomendaciones para operar con el Bitcoin el 15 de mayo según el sistema ICT

El Bitcoin continúa con un crecimiento muy fuerte y ni siquiera intenta corregirse. En el último mes, la primera criptomoneda ha subido 31 000 $, recuperando por completo la caída

Paolo Greco 07:31 2025-05-15 UTC+2

Análisis del par BTC/USD. El 14 de mayo. ¿El Bitcoin apunta a una nueva tendencia "alcista"?

El tipo de cambio del instrumento BTC/USD ha aumentado significativamente en las últimas semanas, la demanda crece prácticamente a diario

Chin Zhao 07:22 2025-05-14 UTC+2
¿No puede hablar ahora mismo?
Ingrese su pregunta en el chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.