Amid the latest downturns in the cryptocurrency sector, experts believe the market is nearing a possible capitulation.
Market Pressure: Signs of Possible Capitulation
The decline in cryptocurrencies accelerated after February 7, when a wave of liquidations triggered widespread price retreats. According to Jamie Coutts from Real Vision, 24% of the top 200 cryptocurrencies hit a 365-day low. This significant decrease is reminiscent of the August 2024 correction, when this threshold peaked at 28%. Coutts questions whether we are in a bull or bear market.
Temporary Correction or Paradigm Shift?
While the price drop rekindled fears of capitulation, some experts view it as a mere retracement in a still bullish market. Juan Pellicer from IntoTheBlock points to the impact of trade tensions between the US and China and the rising valuations related to artificial intelligence on investor sentiment.
Future of the Crypto Market: Prospects and Threats
The rise of memecoins introduces additional uncertainty. As noted by Edwin Mata, CEO of Brickken, these tokens divert capital from established projects, complicating market recovery predictions.
The future of the crypto market remains uncertain. The evolution of capital flows and macroeconomic data will play a key role in the coming weeks.
