Bitcoin is down 55% from its November 2021 high, and currently trades at around $30,000. Over that same period, crypto market capitalization has lost over $1 trillion. What is causing the crypto downturn? Sheena Shah, Lead Cryptocurrency Analyst at Morgan Stanley, analyzes the crypto bear market.
Who is selling and what should we watch out for next?
“In general, the elevated prices were traded on speculation, with limited real user demand. NFT and digital land prices are next areas to watch.”
“The retail investors may have been outnumbered by institutions, but they haven’t gone away.”
“The downturn may continue if central banks persist in their policy of tightening, but the strong hands of these retail investors have historically served as a support to falling prices.”