After the crypto market downturn, observers predict a return to the situation of 2020
Over the past 24 hours, with market values down significantly, many observers have begun to discuss the current crypto market cycle and the potential for a recovery in digital currency prices. Data shows that hundreds of billions of dollars have been taken out of the crypto economy, but some believe that a recovery similar to 2020 could still happen.
Spectators try to guess the next step in the market cycle
The last few days have been tough for crypto assets as market values have fallen, leading to much discussion about the current market cycle and what may lie ahead. On Monday, veteran trader Peter Brandt commented on the decline, drawing parallels with previous years. “Please note that the post-halving decline in BTC is now similar to what we saw in the post-halving up cycle of the market from 2015-2017,” Brandt noted on X. A popular X account called Bitcoin Archive told its 1.4 million social media followers:
Every Bitcoin cycle gives you a "Last Chance" to stock up. And here we are, anon.
Several cryptocurrency advocates and market analysts are suggesting that a recovery period could be on the horizon, reminiscent of previous recoveries. In a post for Bitcoin.com News, Tim Krawczunowski, founder and CEO of decentralized telecommunications network Chirp, shared his thoughts and suggested that a 2020-like recovery could be possible.
“This morning, we all woke up to one of the biggest crypto selloffs we’ve seen this cycle,” Kravchunovsky said. “But this time, it’s not a crypto-specific issue — rather, macroeconomic factors are at the helm. With the Bank of Japan’s surprise rate hike and concerns that the Federal Reserve made a mistake by not changing interest rates at its July meeting, all risk assets were under attack. Crypto assets were simply the first to go because they trade 24/7.”
In the coming hours and days, we may well see a decoupling of crypto from traditional stocks, similar to what we saw in 2020. Back then, cryptocurrencies recovered from the pandemic crisis faster and more noticeably than traditional stock markets, and we may see something similar this time around.
