Grayscale: Bitcoin Could See Another 5-6 Months of Downward or Sideways Price Movement

Grayscale Investments has explained that there may be another 250 days of the current bearish crypto market, citing patterns in previous cycles. För övrigt, “Bitcoin is 222 days off the all-time high, which means we may see another 5-6 months of downward or sideways price movement,” the world’s largest digital asset manager detailed.

Grayscale’s Crypto Market Outlook

Grayscale Investments, the world’s largest digital asset manager, published a Rapportera titled “Bear Markets in Perspective” this week.

The firm explained: “The length, time to peak and trough, and recovery time to previous all-time highs in each market cycle may suggest that the current market may resemble previous cycles, which have resulted in the crypto industry continuing to innovate and push new highs.”

The report details:

Crypto market cycles, on average, last ~4 years or approximately 1,275 dagar.

While most bitcoiners are familiar with market cycles based on bitcoin’s halving cycle, Grayscale has defined an overall crypto market cycle that also roughly works out to a four-year period.

The digital asset manager explained: “While methods vary for identifying crypto market cycles, we can quantitatively define a cycle by when the realized price moves below the market price (the current trading price of an asset), using bitcoin prices as a proxy.”

Chart showing bitcoin market cycles. Source: Grayscale Investments

“As of June 13, 2022, the realized price of bitcoin crossed below the market price signaling that we may officially have entered a bear market,” Grayscale described.

Se även  Europeiska bankmyndigheten oroar sig för att anställa talang för att övervaka kryptoutrymme

The report proceeds to explain that in the 2012 cycle, there were 303 days in the zone where the realized price was less than bitcoin’s market price. In the 2016 cycle, there were 268 days in the zone.

Noting that in the 2020 cycle, we are only 21 days into this zone, the digital asset manager noted:

We may see another ~250 days of high-value buying opportunities when compared to previous cycles.

För övrigt, the report notes that crypto market cycles have been taking about 180 days longer to peak each time.

Crypto cycles. Source: Grayscale Investments

“From peak-to-trough, the 2012 och 2016 cycles lasted approximately 4 år, or 1,290 och 1,257 days respectively, and took 391 days to fall 73% i 2012, och 364 days to fall 84% in 2016,” Grayscale said.

“In the current 2020 cycle, we are 1,198 days in as of July 12, 2022, which could represent another approximate four months left in this cycle until the realized price crosses back above the market price,” the firm continued, utarbetande:

Bitcoin is 222 days off the all-time high, which means we may see another 5-6 months of downward or sideways price movement.

Taggar i denna berättelse

What do you think about Grayscale’s explanation of where the crypto market is headed? Låt oss veta i kommentarsfältet nedan.

Kevin Helms

Student i österrikisk ekonomi, Kevin hittade Bitcoin i 2011 och har varit evangelist sedan dess. Hans intressen ligger i Bitcoin säkerhet, system med öppen källkod, nätverkseffekter och skärningspunkten mellan ekonomi och kryptografi.




Se även  Shark Tanks Kevin O'Leary förväntar sig att Bitcoin kommer att "uppskatta dramatiskt" i 2-3 år

Bildkrediter: Shutterstock, Pixabay, Wiki Commons

varning: Den här artikeln är endast i informationssyfte. Det är inte ett direkt erbjudande eller uppmaning till ett erbjudande att köpa eller sälja, eller en rekommendation eller rekommendation av någon produkt, tjänster, eller företag. Bitcoin-Tidings.com ger inte investeringar, beskatta, Rättslig, eller redovisningsrådgivning. Varken företaget eller författaren ansvarar, direkt eller indirekt, för alla skador eller förluster som orsakas eller påstås vara orsakade av eller i samband med användningen av eller tilliten till något innehåll, varor eller tjänster som nämns i denna artikel.

Läsa varning