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, DataDash host Nicholas Merten tells his 512,000 YouTube subscribers that betting on the Federal Reserve to once again revive crypto markets by turning on money printers is not a good bet.
“The worst time to go in is when you have false hopes that the Fed might just print massive amounts of money, and unfortunately I know a lot of people have gotten excited about QE (quantitative easing). ) passing, but it is not enough to stimulate another bull market. The fact that the Federal Reserve has continued to raise interest rates over the last month is a sign that [the] The Fed will continue to do its job, it is doing the bare minimum.”
According to Merten, the crypto market is about to face a crucial test and if it fails, the total market capitalization of the industry could suffer an epic setback.
“Just to summarize for Bitcoin, for crypto, for total market capitalization as well, we can see [that] we are getting into that potential resistance band, which again has not been broken since January, that will be a real test here for the market, and we believe that we are going to go lower and actually achieve that typical 85% correction. [from the all-time highs].”
The analyst urges traders to be patient as such a decline would take the total market capitalization to a zone that has historically acted as its support.
“[$390 billion] would be an ideal support range for full market cap, removing a lot of 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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Featured Image: Shutterstock/Tithi Luadthong/Natalia Siiatovskaia
