- Financial experts warn against impulsive market-timing decisions during current volatility, with Sarah Maitre emphasising the difficulty of re-entering markets after selling.
- eToro analyst Lale Akoner suggests Trump’s administration has established a price floor for Bitcoin, potentially leading to more supportive crypto policies once short-term volatility subsides.
- Despite extreme fear in crypto markets, Swissblock analysts note Bitcoin’s fundamentals remain strong with improvements in liquidity and network growth indicating the asset is unlikely to enter a bear market.
The market is extremely volatile right now and the past few days have scared many investors. And, with Trump’s trade war just starting and China and Canada retaliating his tariffs – and Trump saying he’d retaliate those retaliations – it’s likely to continue to be a bit volatile for longer.
Related: US Crypto Reserve ‘Bullish’, Market ‘Overthinking Things’, Says Bitwise Senior Exec
Sarah Maitre, founder of Camriel Advisors, told Bloomberg that we can expect more volatility “until we have more certainty on tariffs”, but timing the market is not the right strategy.
But it’s very difficult to time when to get back into equities and you may lose out on the upside.
Sarah Maitre, Camriel AdvisorsKeep Calm and Crypto On?
So, the question is when does it all end? Global market analyst at eToro, Lale Akoner, says Trump’s comeback has created levels of support for Bitcoin, which should provide investors with some confidence.
We see that there is a floor for Bitcoin now just because of the new administration.
Lale Akoner, eToroA recent report by Glassnode goes in a similar direction, suggesting a floor at US$71k (AU$112k) – if it even goes that low.
Akoner believes once short-term volatility eases, we could see “more tangible communications and actions actually coming from the Trump administration”.
I think that is going to be more helpful.
Lale Akoner, eToroMaybe the White House Crypto Summit this Friday will provide some clarity in the meantime, especially about the question of whether there will be a purely Bitcoin-centred strategic reserve or a broader altcoin stockpile.
While Trump did some last-minute rethinking and at least eased off some of his tariff threats, Bitcoin and Co. have actually jumped back into green territory today.
Bears Might Stay Away for Now, Say Analysts
Meanwhile, the Fear and Greed Index is still firmly in Extreme Fear territory with a score of 25, though we have at least moved away from the extremely low reading of 10 a couple of days ago, a low not seen for over 2.5 years.
Related: Analysts Say Volatility to Remain in Crypto Market as Uncertain Economic Conditions Continue
Swissblock analysts said that despite all the volatility of recent days, their Bitcoin Fundamental Index is holding up quite well. On Telegram, the analysts stated that it’s not a bear market just yet.
Bitcoin’s fundamentals are on the verge of shifting into the bullish quadrant, with sustained improvements in liquidity and network growth. This strength suggests that BTC is unlikely to be driven into a bear market.
SwissblockCredit: Source link
