Bitcoin has fallen more than 60% this year and sits roughly 75% off of its all-time high from November 2021. The steepest one-time drops this year followed the big Terra and FTX scandals, but crypto prices are still largely driven by the macro picture, analysts say.
Also, cryptocurrency prices, have remained relatively stable since the summer. Prices have been trading sideways, but some think most of the carnage in the market is done and that while they could still fall, they’ve been at or close to the bottom.
Lyn Alden, founder of Lyn Alden Investment Strategy, said these beaten down levels are a good accumulation point for someone with a three-year view or longer on bitcoin, but they “have to be concerned” in the near term.
In 2023, earnings are more of the concern for the broader asset space but the overall hardness of the dollar and reduction valuations of some is not going to be the big story. This could gives assets like gold or bitcoin a chance to potentially do better than what we see in in the broad equity space because the weakness is probably going to be more earnings related.