Dan Ashmore of CoinJournal says that a number of factors affect the prices of most cryptocurrencies, including inflation and rate hikes.
He told CNBC that bitcoin’s recovery will depend on a number of macro events affecting the market.
Bitcoin and the broader crypto market have lost more than 65% of their value since the November 2021 all-time high.
Bitcoin recovery won’t happen overnight
Dan Ashmore, a cryptocurrency analyst at CoinJournal, told cnbc Said in a recent interview that the recovery in the price of cryptocurrencies will not happen overnight. When commenting on the drop in prices last year, Ashmore said;
“Entering 2022, we were at the end of one of the longest and most explosive bull runs in recent memory. And then the world is in the grip of this post-pandemic inflation crisis. We also experienced one of the fastest rate hike cycles in recent memory. It sucked the liquidity out of all these risky assets. It is not overly surprising that we have seen a pullback of this magnitude.”
Macro climate will play a role in market recovery
at press time, bitcoin price Standing at $21,163, down more than 60% from its all-time high. Commenting on the potential for price recovery, Ashmore said the macro climate will play a big role in that regard. he said;
“Over the past month, we have seen slightly more positive readings. It still has a long way to go, but it is brighter than a month or two ago. We still have a long way to go to get back to the all-time high of $69,000. There is a long way to go.It is not an overnight process.”
That growth depends on a whole range of variables in the macro climate coming our way, he said. Also, avoiding events like LUNA, FTX and Celsius crash could help boost the market in the long term.