Cryptocurrency analyst Nicholas Merten believes that the next decade will see less liquidity and growth opportunities flow into the cryptocurrency market than the previous decade. He attributes this to a significant macroeconomic event that has recently occurred.
Merten did not specify which event he was referring to, but it is likely that he is talking about the ongoing war in Ukraine. The war has caused a great deal of economic uncertainty, which has led to investors being more cautious with their money. This has had a negative impact on the cryptocurrency market, which is still relatively young and volatile.
Merten is not the only one who is predicting a slowdown in the cryptocurrency market. In a recent report, JPMorgan Chase analysts said that they expect the price of Bitcoin to fall to $12,000 by the end of the year. They cited the same macroeconomic factors as Merten, as well as the increasing regulation of cryptocurrencies by governments around the world.
Of course, it is impossible to say for sure what the future holds for the cryptocurrency market. However, Merten’s and JPMorgan’s predictions suggest that investors should be prepared for a period of slower growth in the years to come.
This is likely due to a number of factors, including the ongoing war in Ukraine, rising inflation, and the Federal Reserve’s plans to raise interest rates.
As a result of this weakness, investors may be looking to invest in other assets that are seen as being more stable, such as U.S. treasury bonds. The U.S. 10-year yield has recently reversed its bearish trend for the first time since 1951, which suggests that investors are becoming more confident in the U.S. economy.
It is important to note that the crypto market is still very volatile, and it is possible that Bitcoin could see a rebound in the near future. However, the current trend suggests that it is likely to continue to struggle in the short term
Bitcoin is struggling as investors pull money out of the cryptocurrency market. This is drying up liquidity and making it difficult for people to buy and sell Bitcoin. Some experts believe that investors may start to put their money into U.S. treasury bonds instead, as the 10-year yield has recently started to rise.
Although some retail investors will continue to invest in the cryptocurrency market, Merten argued that institutional investors, which he believes are the primary drivers of cryptocurrency prices, will begin to invest in U.S. treasury bonds. The trader stated that the rate of inflation will be one factor that will determine the rate at which institutional investors invest in U.S. treasury bonds.
If inflation continues, as Merten believes it will, institutional investors will start to invest in U.S. treasury bonds at a much faster rate and will likely stay there for the foreseeable future. However, the trader did not rule out the possibility of Bitcoin reaching a new all-time high, but predicted that it would take several decades without the help of institutional investors.
According to CoinMarketCap, as of press time, Bitcoin’s price is trading at \$26,742.17. This is a decrease of 1.99% from its price 24 hours ago. This negative daily performance has also caused Bitcoin’s weekly performance to turn red, with a decrease of 0.40%.
It is important to note that the cryptocurrency market is volatile and prices can fluctuate rapidly. It is always important to do your own research before investing in any cryptocurrency.
