Why This Time Is Actually Different for Crypto


Aaron and I revisit the cryptocurrency markets, which have been decimated in 2022 amid growing inflation. There’s no question about whether we’re in a crypto bear market. The only question is when that bear market ends for cryptos. And the charts tell the tale.

In this case, realized losses and Puell multiple charts tend to signify when we’re in a market bottom. I put my technical analysis hat on and visit the charts to look at whether we’re at “max pain” in cryptos.

According to both the realized losses and Puell multiple charts, it does appear that the 20,000 level should hold for Bitcoin (BTC-USD). To put it another way, crypto are at (or very near) the bottom.

That said, I believe there’s a possibility for BTC to drop another 50% to the 10,000 level. But it’s not my base case.

Going further, I acknowledge there’s a correlation between the Federal Reserve hiking rates and the price of crypto. When the Fed goes from hawkish to neutral, that’s a catalyst for Bitcoin to reenter its boom cycle.

Will it happen again?

While I don’t have a crystal ball, I am confident that Bitcoin, Ethereum (ETH-USD), and certain high-quality altcoins will hit all-time highs by the first quarter of 2023.

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On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.

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