A widely followed crypto analyst is issuing a warning to investors, saying he believes the asset class could suffer a widespread collapse later this year.
In a new video update, Nicholas Merten, the host of DataDash, tells his 512,000 YouTube subscribers that banking on the Federal Reserve to once again jumpstart the crypto markets by turning on the money printers is not a good bet.
“The worst time to go in is when you’re going off of false hopes that the Fed will be able to just print massive amounts of money, and unfortunately, I know that a lot of people have gotten excited about the QE (quantitative easing) going on, but it’s not enough to stimulate another bull market. With the Fed continuing to raise interest rates over the past month, it is a sign that [the] Fed is going to continue doing its job, it’s doing the bare minimum.”
According to Merten, the crypto market is about to face a crucial test, and if it fails, the total market cap of the industry could suffer an epic setback.
“Just to summarize for Bitcoin, for crypto, for the total market cap as well, we can see [that] we’re entering into that potential resistance band, which again has not been surpassed since back in January, that’s going to be a real test here for the market and we think we’re going to come down and really get that typical 85% correction [from the all-time highs].”
The analyst urges patience on the part of traders as such a decrease would land the total market cap in a zone that historically acted as its support.
“[$390 billion] would be an ideal range of support for total market cap, flushing a lot of the noise in the altcoin space, looking for new market leaders [and] trends, that’s the long-term game. We have to be patient.”
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