Cryptocurrency Market Analysis: Wolfe Research Predicts Further Decline in Crypto Prices
In a recent report by Wolfe Research, it has been observed that cryptocurrencies are losing steam, marking a significant shift from the hype of previous years. While equities have been outpacing cryptos since March, the report suggests that the trend for cryptocurrencies is downward, with the potential for further decline.
Factors such as excess liquidity and high enthusiasm that once drove crypto prices to new highs are now working against the market. Bitcoin, which reached a record high of $73,798 in March, has been unable to sustain its peak, with repeated attempts to rally falling short. Events that once drove enthusiasm, such as inflows into US Bitcoin ETFs and hopes for Federal Reserve interest-rate cuts, now seem to have less impact.
Wolfe Research remains neutral on Bitcoin until a decisive move occurs, but expects range-bound trading to continue until a breakout in either direction. The analysts at Wolfe Research believe that the path of least resistance for Bitcoin is to the downside, as the price has been gradually trending lower since the peak in March.
Additionally, other key assets in the crypto market are also showing signs of weakening momentum, suggesting that the challenges ahead for the market may persist. The report indicates that Alt coins are breaking down to fresh lows, similar to the Ai trade, which has also seen better days.
In conclusion, the analysis by Wolfe Research points towards a bearish outlook for the cryptocurrency market, with further decline expected in the near future. Investors should be cautious and monitor the market closely for any decisive moves that could impact their investments.