Roal Paul in an interview with Cointelegraph discusses the macro issues that are liable to put the crypto markets under pressure along with the catalysts that might be the leading reason behind the surge and in knowing how long will the next crypto market last.
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According to him, the current Crypto bear market will only come to a defined end when the Federal Reserve eases its monetary policies by stopping the continuously raising interest rates. He states in this exclusive interview that the Fed is unlikely to increase the interest rates as far and as fast as you might expect.
How Long Will The Next Crypto Bear Market Last?
Further adding that he expects them to cease the rise in interest rates somewhere in the summers. According to Pal, the current crypto bear market is a combination of rising interest rates along with the fear of an impending recession.
Retail investors’ income hasn’t risen similarly to the rise in the prices, hence making them lose discretionary income. Though in order to save money people are required to be less active.
Pal also stated that the market’s bottom hasn’t been reached yet, hence a big liquidation phase including both crypto and traditional assets might be imminent. Cryptocurrency might experience a “liquidation surge” if stocks do the same, and then the market would “eventually” come to a “final surrender,” he said.
At this particular point, according to Pal, the Federal might give ease to its monetary policy and sets the stage for the next crypto surge by enabling more liquidity into financial markets. In addition to the macro picture, the adoption of a Bitcoin spot ETF and Ethereum’s move to a proof-of-stake mechanism, which is likely in Q3, might help the next bull run.
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Further by having a factual discussion on How Long Will The Next Crypto Bear Market Last and whether it will see an end or not. We would like to delve deeper into what a bear market is. It is when the crypto market declines over an extended period of time, it’s referred to as a bear market.
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The truth is that a bear market has no clear description in a textbook. As long as cryptos fall by 20% from their recent highs, analysts say they’ve entered the bear market territory. Since December 2021, the cryptocurrency market has been in a negative trend, according to this theory. The cryptocurrency market has been in “bear market territory” before, and it won’t be the last, as history shows. To see if the cryptocurrency bear market will end soon, join us.
The Cryptocurrency Market Right Now
There has been a significant drop in the value of Bitcoin, Ethereum, Binance Coin, and other cryptocurrencies since December 1st, 2021. The crypto market is struggling, there is no other way to say it. However, the markets don’t immediately become gloomy, since there are other factors that contribute to the ongoing drop in prices. A bear market in cryptocurrency is expected to be caused by these factors:
When it comes to raising interest rates, the US government believes that the economy is no longer dependent on government intervention. With the value of the NASDAQ index, which is heavily weighted toward technology companies, falling in recent months, there have been some links between the crypto market and the US equities market.
Along with nations such as Argentina and Turkey, the United States is dealing with record-high inflation. While Russia is attempting to outlaw everyday crypto trading, other nations, such as India, are considering draconian crypto legislation.
Cryptocurrency prices may be falling for a variety of other reasons. However, in general, the following may be said to sum up these factors: Institutional investors may have less money to invest in risky assets if interest rates rise. Whenever the markets are down, it is not uncommon for investors to seek safer, less volatile investments.
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During times of rising inflation, middle-class residents throughout the world prefer to prioritize their basic necessities above speculative ventures. It is well-known that the level of trust in cryptocurrency decreases with each additional regulatory obstacle or restriction.
As previously said, this isn’t the first time the globe has faced a crypto bear market. The so-called “crypto winter” of 2013-2015 and 2018 were brutal, but Bitcoin and other cryptocurrencies returned. Is it going to happen again? In these unpredictable and pandemic-ridden times, we’ll have to rely on the data we already have in order to make sense of what lies ahead.
Cryptocurrency Market Continues to Expand
The cryptocurrency had an eventful year in 2021. Coins like Bitcoin, ETH, DOGE, and others are now accepted as payment by some of the world’s most well-known companies. Token sales topped $3 trillion in 2021, with the help of investors including Venture Capital firms, who put in much to $30 billion. Recall that despite lockdowns, new versions, and China forbidding cryptocurrencies, these investments were made. In a nutshell, a large amount of money is being put into crypto.
In 2022, the tendency is expected to continue. Crypto and blockchain businesses raised the same amount of funds in January 2022 because all of the African entrepreneurs did the previous year, for example. To be sure, the startup market in Africa isn’t a people pleaser and is expanding at a breakneck pace. This might be due to the fact that now the crypto market is now looking forward, as detailed in the following sections.
Impact of NFTs on Cryptocurrency Trading
During the last two years, Non-Fungible Tokens (NFTs) have been a huge hit. Artworks and collectibles are recognized as being the most popular forms of NFTs since they sell out fast. NFTs, on the other hand, are seen only as assets, and as a result, they’ve developed their own unique traits and standards. As an example, contrast the Bored Ape collection with the value of a Bitcoin.
Cryptocurrency and non-financial technology (NFT) markets aren’t directly linked in terms of volatility or volatility but in terms of investor sentiment and unpredictability. Being created on the blockchain and priced in cryptocurrency, NFTs may be negatively affected if the crypto markets experience a downturn since investors may be less willing to pay the high pricing. On the other hand, many experts believe that NFTs have a bright future in spite of the current dismal crypto market environment.
What’s Next for the Metaverse?
As firms like Facebook have renamed themselves to Meta as a method of signaling their seriousness, the metaverse becomes an actuality sooner rather than later. In the metaverse, cryptocurrencies will play a significant role. In addition to being rapid and decentralized, they are also entirely digital. It is a promising long-term indicator that platforms like Decentraland and Axie Infinity have already created a framework for integrating cryptocurrencies with the metaverse.
Conclusion
For as long as markets have been, volatility and bear runs have been a part of the landscape, regardless of whether it’s in the form of commodities, stock, or cryptocurrency. The current crypto bear market and the silver linings that exist in the form of the money poured into cryptocurrencies, NFTs, and the metaverse has been explored in some of these considerations. How long will the crypto bear market last and whether or not this bear market will come to a conclusion in the near future is unknown? What is clear, however, is that the sturdiness of cryptocurrencies will be defined over the next several weeks and months.
