The host of popular YouTube channel Coin Bureau says he expects the crypto downturn to extend through 2023.
In a new discussion on YouTube channel Digital Asset News, crypto analyst Guy Turner says he monitors traditional markets because of their correlation with crypto.
“There’s a lot to look out for with what we see from the Fed and what decisions they make. That switch to QE [quantitative easing], if it happens, could be the indication that something’s already gone seriously wrong. I’m kind of keeping an eye on things like the housing market and the stock market as well because we’ve obviously got that correlation between stocks and crypto.”
Amid the pessimistic outlook for the equities and housing markets, Turner says he expects crypto assets to see further losses.
“We’ve yet to see the stock market take that next leg lower, which I think is what a lot of people seem to be expecting, so I’m kind of preparing myself for that and for quite possibly for a crisis in housing as well. I’m eyeing up sort of further lows as a result of that and possibly because of other kinds of crypto-specific factors.”
As Bitcoin (BTC) surges past $20,000 from $16,581 on January 1st, Turner says crypto assets will not likely sustain the rally.
“I think in terms of what people can sort of expect or what people should prepare for, as I said earlier, that idea of everything kind of moving sideways with these occasional pumps that kind of fizzle out fairly quickly.”
Guys says there may be some good news for some crypto projects, but it may take time before the market recovers.
“We’ll have, hopefully, some indications that the macro situation is improving, and it’ll be that sort of sense of excitement like, ‘Maybe we’ve turned the corner,’ and perhaps we have, but I still think that will take a while to play out in the markets.”
He says investors are still cautious about putting their money into crypto.
“It will take a while for investors to be kind of tempted back to the table, especially for risk assets like crypto, so I think patience is going to be such a key virtue to have over the next 12 months at least. Nothing is going to happen as we would like it. Nothing is going to be as quick. It’s going to be a kind of slow grind a lot of the time.”
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