Frightening Report from the USA: Hopes Left for Another Spring in Bitcoin!

2022 has been a nightmare year for the cryptocurrency market. As Bitcoin (BTC) fell from $50,000 to $17,500, the industry was hit hard by crises, bankruptcies and serious investigations.

KPMG Report Paints a Somber Picture

The crashes that have occurred since the beginning of the year have certainly made many people question the future of the market. Although some analysts and industry leaders paint an optimistic picture, it remains unclear when Bitcoin will recover. A report published by KPMG , one of the 'big four' of the accounting sector in the USA , caused concern. According to the company's research, interest and investments in cryptocurrencies will decrease further in the coming months. However, the focus of the investor in this process may be especially the NFT sector. The report expects investment in cryptocurrencies to decline further, while the use of blockchain will gain momentum.

Alexandre Stachtchenko, director of blockchain and crypto assets at KPMG France, stated that cryptocurrencies, especially those with no clear uses and functions, will be removed from the market this year. According to the report, macroeconomic conditions have greatly affected the cryptocurrency market. The crisis environment triggered by external factors such as the Russia-Ukraine war, record high inflation and regulatory barriers will continue to be obstacles for Bitcoin (BTC) and Ethereum (ETH). As of June 30, approximately $14.2 billion was invested in the blockchain and cryptocurrency industry in 2022. In 2021, this figure was $32.1 billion. According to the report, this figure will not be reached in 2022. As a result, there will be a lack of individual investors in the market, and the selling pressure will continue to affect prices.

How Much Time Does Bitcoin Need?

The past three weeks have been a tough time for the cryptocurrency market. Bitcoin lost 22.4% in this process and is currently trading at $ 18,980. The fall of BTC below $ 20,000 caused concern among investors. BTC may struggle to recover as it loses the support of both its 50-days (red) Simple Moving Average (SMA) and its 100-days SMA (blue).

On the Relative Strength Index (RSI), BTC is approaching the oversold region, which has historically been a trend reversal area. Considering the historical data, it took 56 days for Bitcoin to rise from the bottom and reach the highs in the indicator. Therefore, even if recovery occurs in the short term, BTC still needs time to perform as desired.

Source: coin-turk.com