The cryptocurrency market is declining following stock indices, and, in their turn, they fall due to two main reasons: rising rates from the outside regulators (Fed, ECB, Bank of England, etc.) and the onset of a global recession, which is already becoming a fact.
In such conditions, a sharp increase in investor interest in risky assets just cannot be expected, Artem Deev, the head of the analytical department at AMarkets, explained to Invest-Foresight.
Capital flight is now happening around the world, which is unlikely to stop in the foreseeable future, the expert believes.
“Usually after the indices fall by 20% or more, which has already happened in the United States, recovery takes from one and a half to three years. Probably such a period will also be required for cryptocurrency to recover. Therefore, we should not wait for a serious growth neither of bitcoin nor of ether. On the contrary, we may soon see bitcoin at the level of $10-12 thousand, and ether – at about $1000 per coin, – the analyst predicts. “This is a prospect until the end of this year.”