Cryptocurrencies have been officially falling for over a year now. Unfortunately, sometimes there seems to be no stopping the bear market. Many charts look like tears, but don’t worry, according to deVere Group, the bear market won’t last that long.
Bitcoin Nears Bottom by Central Bank
That explains Nigel Green, founder and director of deVere Group. This company is one of the largest financial advisory firms’s, and also does asset management. Green emphasizes in a notice to investors Which bitcoin rose slightly after the Federal Reserve hinted that it may be less comfortable with raising interest rates. The majority of the central bank board wants to take this even more calmly. It can have quite an effect on the economy and on companies with a lot of debt.
Green continues: “Assets that benefited most from low interest rates have been hit hardest by higher interest rates in 2022. This includes equities, particularly in the technology sector, [maar ook] stocks and other assets.”
If central banks actually take their foot off the brakes, that would be hugely positive for crypto in his view – precisely because this sector would have been hit hard in 2022. He thinks the central bank will stop raising in the second quarter of 2023 of interest rates – somewhere between April and June.
— deVere Group (@deveregroup) November 24, 2022
Is this BTC bear market getting shorter?
Some bear markets last a very long time. For example, bitcoin (BTC) started falling at the end of 2013, but the uptrend was not found again until about 600 days later. After 2017, it took until after the crash in March of 2020 for the market to show a clear uptrend again – again more than 800 days.
The current downward trend lasts ‘only’ about 380 days. That’s a lot, but it could take even longer. If it’s up to Nigel Green, that’s not going to happen.