The recent Bitcoin crash has many wondering if the bull run is over. One analyst, however, believes that while volatility in crypto pricing may continue to pick up until next year’s Q1 drop-off, it will not be long before a new cycle begins.
The “next crypto bull run 2021” is a prediction by the Sales Trader of GlobalBlock. This is due to the recent Bitcoin crash not being the end of the current bull cycle.
Following recent Bitcoin and digital asset swings and news, Marcus Sotiriou, Sales Trader at GlobalBlock, a UK-based digital asset broker, said that the current Bitcoin collapse may not be the end of the current bull cycle.
Bitcoin dropped from $53,890 to about $42,000 in the early hours of Saturday morning, dragging down the bulk of altcoins with it.
Most crypto investors were surprised by the sudden decline, according to Marcus Sotiriou, since many were anticipating a rebound until the end of the year. Crypto ‘whales,’ who have been shifting Bitcoin from crypto wallets to crypto exchanges at an alarming pace, have flooded the markets with massive quantities of selling.
On Saturday, approximately $2 billion in leveraged positions were liquidated, resulting in a cascade of liquidations.
The fact that it happened on a Friday night in the US and coincided with the weekend in Asia, one of the lowest times for market liquidity, exacerbated the deleveraging of crypto asset holdings.
Sotiriou remarked that, despite the fact that leverage was lower than in prior collapses, the impact of decreased liquidity was still significant, and that, although markets have gotten more efficient over time, there is still a long way to go to prevent forced selling scenarios.
Other variables, according to Sotiriou, contributed to the decline despite all of the events that occurred before to the dive.
Sotiriou claims that:
“This risk aversion stems from a number of issues, including concerns about the Omicron variant, Evergrande’s impending default, and, most crucially, in my perspective, institutions seeking to secure profits as the year draws to a close in order to manage risk.” But, contrary to many analysts’ projections of a blow-off top in 2021, I don’t believe this is the conclusion of the bull cycle, and I believe this sell-off has lent credence to the extending cycle hypothesis, according to which this bull market might stretch until 2022.”
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A recent article from the “GlobalBlock’s Sales Trader says the recent Bitcoin crash may not be the end of the current bull cycle.” The article discusses how this could mean that there is more to come. Reference: end of crypto.
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