BTC is currently trading at roughly $21,000, with a 10% decline over the last five days. On the previous day, the price of the primary cryptocurrency fell by around 4%, and other cryptocurrencies also experienced a decline.
Is a Recovery Rally on Cards?
Talking about the continued market turbulence, the pseudonymous presenter of CoinBureau warns that values for crypto assets are about to fall even further.
Guy advises his 2.09 million YouTube viewers that the recent rebound rally is probably going to fizzle out.
According to him, if the current cryptocurrency price movement wasn’t obvious enough, the big purge seen in Q2 has laid the groundwork for a significant recovery rally that may be in store.
However, the markets will eventually understand that all of the macro causes that triggered the most recent crypto crashes have not been rectified, which might drive crypto to reach new lows.
Full-blown Testing Time for Crypto
The CoinBureau host claims that because the fear isn’t widespread yet, crypto assets have not yet reached “peak capitulation.”
This ideology is supported by many institutional investors, like Kevin O’Leary, who think that a full-blown panic hasn’t yet occurred.
On the other hand, Guy claims that many measures, including trade volumes, the number of decentralized finance (Defi) users, and the Bitcoin (BTC) hash rate signal that the cryptocurrency asset sell-off has not yet reached the levels historically linked with extreme surrender.
He offers some vital advice to amateur investors, noting that despite the recent drop in cryptocurrency prices, the number of daily Defi users has mostly remained constant, transaction volumes have hardly changed, and the Bitcoin hash rate has increased even as the price of BTC has fallen. Again, this is encouraging for the immediate future.
It makes sense that all of these measurements would have been significantly lower if what has been observed over the past six months hadn’t been so agonizing.
Moreover, the host of Coin Bureau predicts that a number of events, including the realization of the significant Ethereum (ETH) upgrade, would cause the current recovery rally to cease in September.
“If you’re wondering when the current recovery rally might come to an end, my predictions are that it will happen in mid-to-late September when the Ethereum breakdown is anticipated to occur and the Fed returns from its summer break with what will probably be another rate hike to fight inflation.”
In connection with that, many regions of the world may begin to see an increase in energy prices in preparation for wintertime oil and gas shortages.