Crypto outlook: Another bull run or a crash; what experts expect

cnbctv18.com:

Bitcoin has managed to bounce back after a sharp slide over the last week. The legacy coin crossed the $36,000 mark, gaining close to 9 percent on January 25.

Altcoins also followed with Ethereum rising nearly 10 percent to over $2,400.But even though it looks like bitcoin is making a recovery, analysis from Coindesk shows multiple oversold signals. According to the news site, this could lead to initial resistance at the $40,000 point, and result in unstable falls over the short term.The world’s oldest crypto had shed 12 percent over the last week with price slipping under $33,000 on January 24 in one of the most significant drops since July of 2021.

Ethereum and Solana also saw substantial price drops throughout the week. Ethereum shed over 22 percent over the week, hitting $2,176.41 on January 24, an all-time low since July of last year, according to data from coinmarketcap.Also read: Bitcoin rebounds from six-month lows as buyers step inAccording to Marcus Sotiriou, an analyst at the UK-based digital asset broker GlobalBlock, it is hard to determine if this is a bear market.

In an email to coindesk, he wrote, "I think the determination of a bull/bear market is not as clear as previous cycles, due to the structure of the market changing drastically with institutions entering the space."One problem the broader crypto market has been facing is that it has been moving in tandem with stocks, which have continued to fall since the start of this year. Fear of tighter monetary policies from the Federal Reserve has led to investors selling risk assets like technology stocks."It's possible that macroeconomic concerns, such as the Fed's response to inflation rates, have facilitated more de-risking activity in general," said