Vanda Research has notified of a large emendation in the cryptocurrency market. Ben Onatibia, the firm’s partner and superior administrator, said that the surge in cryptocurrency costs this year is reminiscent of bitcoin’s rally in 2017.
A Correction in Crypto Market Appears to Be Brewing, Says, Analyst
Vanda Research published a report Monday warning of a broad correction in the cryptocurrency market. The firm’s partner and senior strategist, Ben Onatibia, disclosed that in 2017 the bitcoin price rise was followed by a correction and a jump in interest in then-lesser known cryptocurrencies. He added that “a more extensive correction” in crypto markets seems to be brewing.
“The meteoric growth in cryptocurrencies has a whiff of deja vu,” Onatibia explained, adding that in 2017 when the bitcoin rally began to wane down, “investors pivoted to lesser-known altcoins like ripple and ethereum.” Noting that during that time XRP crested on Jan. 8 while ETH propped onto its receptions for another week or two, he described:
In the months that followed, cryptocurrencies cratered as retail investors rushed to the exit.
The analyst explained that soon the crypto market is in “specifically the same hot potato game” that took place in 2017. He mentioned that “Under the pretext of institutional support, retail investors started turning out of insecure retail stocks and draining their money into bitcoin.” Vanda Research said in its note that following the most contemporary hill, retail buyers have crowded to dogecoin and ether, similar to what happened in 2017.
Onatibia tended out that despite Tesla CEO Elon Musk’s attempt to encourage dogecoin with tweets and remarks on Saturday Night Live (SNL), dogecoin has failed to fully recover. “If and when ethereum suffers the same fate, the cryptocurrencies will likely face a stream of salvation,” said the macro tactician.
Emphasizing that “open interest data from different crypto exchanges shows that there has been a rotation from bitcoin to ethereum since the Coinbase IPO,” the strategist opined:
We think a correction in crypto would push retail investors back into equities, where some of their favorite stocks are now trading at a significant discount vis a vis the February highs.
Do you agree with the analyst about an incoming correction in the crypto market? Let us know in the comments section below.