Negative sentiment in the cryptocurrency space hitting new highs has historically been a bear market bottom signal, and as the cryptocurrency community faces doom and gloom it’s possible prices may stop dropping.
According to on-chain analytics firm Santiment, the cryptocurrency community is dealing with a plethora of negativity that has helped cryptocurrency prices plunge over the last couple of months, but that negativity has historically been a bottom signal when it peaks.
The firm noted that the cryptocurrency market has been facing “a whole lot of doom and gloom” as leading cryptocurrency exchange Binance released a Proof-of-Reserves report that failed to calm users concerned about its solvency, and after the collapse of cryptocurrency exchange FTX.
Santiment also pointed out that Federal Reserve Chairman Jerome Powell has maintained a hawkish stance, further pressuring risk assets as interest rates rise in a bid to rein in inflation. Despite these bearish factors, various analysts are bullish on $BTC and other cryptoassets.
A fund manager at investment giant VanEck has recently predicted that the price of the flagship cryptocurrency Bitcoin could rally to $30,000 in the second half of 2023 after falling to a low near the $10,000 to $12,000 mark.
Earlier this month billionaire investor Tim Draper, the founder of Draper Associates and one of Silicon Valle’s best-known investors, doubled down on his $250,000 Bitcoin price prediction, saying the cryptocurrency will hit that mark by June of next year.
Draper isn’t the only billionaire bullish on crypto. Billionaire investor Mike Novogratz has revealed that he still believes BTC will trade at $500,000 per coin in the future, but delayed his prediction over the Federal Reserve and other central banks raising interest rates to rein in inflation.
Novogratz said that he believes $BTC will trade at $500,000 but “not in five years,” as per his words Federal Reserve chairman Jerome Powell found “his central banking superpowers.”
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