Crypto market correction: A temporary dip or a fundamental shift?

The crypto market has not really done well since the launch of the Bitcoin ETF. The valuation of every possible token is crumbling every day. BTC, for one, is down to ~$40,000, and ETH is trading at ~$2,200. Many have stated that this is a temporary pullback, expected to last for a short time. Some have also called it a price correction, a phase that the crypto market was expected to hit anyway.

Crypto influencers like Kyle Chasse, Ran NeuNer, and Alex Becker have put forward their optimistic views. Per their statements, the fall in the value of cryptocurrencies will not last till the end of 2024. It will last briefly and then bounce back, probably triggered by Bitcoin Halving. The process is scheduled to happen in the middle of the year. It has historical context about pulling the prices upward.

Their belief is that the selling pressure from GBTC (Grayscale Bitcoin Trust) is nearing its end. Once sufficient tokens have been liquidated, the market will have sufficient opportunity to drive prices upward. Also, FTX is out of the picture, having sold off approximately $900 million worth of assets.

A sharp pull of 10–15% in the price of BTC is expected to happen in the days to come. Altcoins may gain around 30–50%.

Till then, a total of three ways have been listed for the community to navigate their way around the current crypto market correction.

  • First, holders have been asked to be patient with their tokens. The fall is temporary and short-term, poised to fetch results in the long run. Not that a cemented timeline has been drawn, but speculations are very much alive that waiting for a longer time will yield returns to the community.

  • Second, keeping a closer watch on on-chain analytics and crypto price predictions have been recommended. They will reflect the point at which selling pressure goes down.
  • Finally, check out the actual average that the crypto market is generating instead of noting ups and downs every minute.

All the points are subject to personal interpretation. For instance, short-term investment may work for those who bought BTC when it was at ~$25,000, rising from the ashes to now touch ~$40,000.

Factors that are affecting the crypto market include the launch of the Bitcoin ETF, GBTC’s selling pressure, FTX, and understanding about how long one should hold on to their portfolio.

BTC prices are also coming down because GBTC is on a selling spree. It has reportedly significantly brought down its Bitcoin reserve to take off the steam. Once that spree ends, can the price come back on track?

Two dominant tokens, BTC and ETH, are currently exchanging hands at $40,331.28 and $2,254.84, respectively. They have briefly noted a rise of 3.64% and 1.39% in the same order.

Trevor Holman

Trevor Holman follows crypto industry since 2011. He joined CryptoNewsZ as a news writer and he provides technical analysis pieces and current market data. He is also an avid trader. In his free time, he loves to explore unexplored places.

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