The current weakness in the crypto market is seen as a "sell-the-news effect" and a correction that was overdue, according to Joel Kruger of LMAX Digital. However, there are other factors at play, such as uncertainty around the US economy, which is causing a risk-off wave. Ruslan Lienkha of YouHodler markets believes that the current market environment may lead to a medium-term bearish market, especially with concerns about a potential recession in the US. Despite this, Kruger believes that bitcoin is getting closer to finding a bottom and should be well-supported at the previous resistance area. Lienkha notes that while bitcoin could evolve into a hedging asset in the future, investors currently perceive it as a high-risk asset. The stock market and economic data will continue to be watched for its impact on the crypto market.
Bitcoin, Solana and Crypto Markets Likely in ‘Classic Bear Trap’ Before Euphoric Move: InvestAnswers