The well-known cryptocurrency analyst, Cred recently reviewed the cryptocurrency markets. According to him, several factors impact the markets for risky assets. Cred also talked about the price of bitcoin (BTC). Here are the conclusions of his analysis of the current state of the crypto sector.
The impact of central banks on risk asset markets
According to Cred, the global economy was first affected by the COVID-19 pandemic. Then there was the increase in inflation. The Fed and the majority of central banks have tried to contain the latter by increasing interest rates. This has impacted the crypto market. Meanwhile, the US dollar is growing in value, outpacing all other fiat currencies. Cred believes that all of these factors influenced the correction in the price of BTC.
The analyst added that these different conditions are extraordinarily unique. So there is very little chance that this will happen again in the years to come. According to him, thissequence of events is in itself so unfathomable that realistically we could only have one in our lifetime“. He acknowledged, however, that there will often be corrections in the crypto markets.
Furthermore, Cred believes that investors should take advantage of the current bitcoin (BTC) price to buy the flagship crypto. According to him, at $20,000, BTC is an opportunity, as long as you can take some downside. He suggested that investors will only regret their purchase if their volatility tolerance is low.
It must be said that recent data suggests a future bullish trend in the bitcoin (BTC) market. Indeed, the amount of BTC held on crypto exchanges has dropped considerably in four years. On September 30, $700 million worth of BTC was withdrawn from exchanges.
For the famous crypto analyst Credit, investors will rejoice, in the long run, that they bought bitcoin (BTC) at $20,000. Indeed, the price of the flagship crypto is expected to rise soon. Cred is also very eager to see the prices of other cryptocurrencies rise.
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