At the time of writing, the largest cryptocurrency is worth $31,000. Investors have suffered serious losses as a result of the fall that occurred tonight. With the positive opening of the US stock markets, BTC, which again rose above $32,000, turned down again due to the statement of the stablecoin made by the US Treasury Secretary.
When will cryptocurrencies grow?
A popular analyst, known on social media under the nickname Light, informs his 157,800 Twitter followers that the risk-to-profit ratio of Bitcoin (BTC) looks attractive, since BTC is trading very close to $30,000.
“If you’ve come this far, it’s time to pack up. We are very close to the bottom and in 3 months it won’t matter where the bottom is. If you don’t believe me or don’t understand, I don’t have time to convince you, I’m sorry.”
The analyst also said that experienced traders open long positions at the current BTC price.
Supports the uptrend
The analyst said that bearish signals attract investors, but investors who act boldly in this gap can make a very serious profit. Light says that long positions on the Bitfinex crypto exchange have soared to record highs.
“Bitfinex whales continue to collect what weak hands sell, as they did last July.”
Bitcoin has not yet given a clear signal of recovery. Ethereum also finds buyers at a price of $ 2,390. There are concerns that the fear caused by Terra will increase regulatory pressure on cryptocurrencies. Wednesday and Thursday will be extremely critical. Data on the US consumer price index will be published on Wednesday at 15:30. If inflation turns out to be higher than expected, we may face a tightening of the Fed’s monetary policy. In the opposite scenario, bitcoin and altcoins are expected to recover.
On the other hand, on Thursday, US Treasury Secretary Yellen will put cryptocurrencies on the agenda. It is expected that in his speech he will pay special attention to the stablecoins and the UST disaster. Today he said that there is an urgent need to regulate the stablecoin by the end of the year. Terra’s founder, on the other hand, said he would announce a recovery plan a few minutes ago. If the markets are satisfied with the recovery plan that will be announced, we may see sudden upward movements in the coming hours.