Price predictions 3/2: SPX, DXY, BTC, ETH, XRP, BNB, SOL, DOGE, BCH, ADA
Bitcoin’s return to the $70,000 level proves that buyers are absorbing the bulk of selling, but analysts warn that traders should be patient due to market bottoms taking months to form.
War in the Middle East failed to sink Bitcoin (BTC) below the $63,000 level. That may have attracted buyers who are attempting to maintain the price above $69,000. However, a quick recovery is unlikely. Macroeconomic newsletter Ecoinometrics said in a post on X that deep drawdowns generally unfold slowly, advising “patience rather than urgency.”
Data shared by Bitwise Europe head of research André Dragosch shows that when investors buy and hold BTC for at least three years, the probability of loss drops to 0.70%. Although BTC is down roughly 50% from its all-time high, its three-to-five year realized price of $34,780 shows that investors who bought and held during the period are sitting on large profits.
The big question on traders’ minds is when to buy BTC. BitMEX co-founder Arthur Hayes said in a blog post that every military action by the US Presidents in the Middle East since 1985 has resulted in monetary expansion by the Federal Reserve. If the current conflict stretches, the likelihood of a similar action by the Fed increases.
Read more
