Due to intense economic pressure and the federal reserve
recent decision to raise interest rates, Bitcoin has dropped into a narrow band between $22,000 and $25,000. The crypto market has recently been closely following the stock market, which experts say has further entwined it with macroeconomic considerations.
According to a Fidelity Investments executive, dollar-pegged crypto assets may boost the Bitcoin (BTC) adoption rate.
In a recent interview with Crypto Banter on his YouTube channel, Jurrien Timmer, director of the global macro at Fidelity, said that stablecoins will serve as a catalyst for the increased acceptance of cryptocurrencies in the future.
Bigger Problems, Tougher Solutions!
Jurrien Timmer claimed that soon, a regularized stablecoin will provide investors a safe harbor since it will entice both established large investors and new small- to medium-sized investors to explore the market.
“If stablecoins are regulated, proven safe, and the area is legitimized, then I think maybe investors will have greater trust in the network effect and the adoption curve of Bitcoin, which has followed a variety of historical trends whether it’s internet usage or mobile phones”
In his opinion, more investors may begin to feel confident as the promise of this expanding adoption curve can truly be realized as the space gets legitimacy and scale.
However, the Technical models and charts, according to Timmer, demonstrate how significantly the most recent crypto winter affected the markets. He advises investors to feel secure before considering getting back into the market.
He also explained why he is cautious about the impending crypto winter, claiming that all models are already underperforming as a result of it and that significant financial pain is likely. As a result, since all investors must contend with market volatility, it may have an effect on both long-term and short-term investors.
Breaking the Momentum
While cryptocurrency traders try to determine whether the crypto winter is gone, bitcoin orgis still miles away from its ATH. However, positive movement is likely now as the selling pressure has decreased to a large extent. Momentum traders can step in and seize the opportunity.
Given that the current instability will persist through the end of the year, it is critical to watch where the wave will take cryptocurrencies. However, while cryptocurrency volatility remained low at the time of writing, Bitcoin’s price dropped just under $23,000.