"At the moment, I still think there is danger out there. It's very clear looking at the evidence historically." However, Howell predicted central banks are unlikely to change their stance for many months, increasing the risk of investors getting in a "bit too early." "I'd rather wait two or three months - miss potentially the first few percent - and then get in when the trend is clear," he said. He added that as soon as central banks pivot away from monetary tightening, assets - including bitcoin - "will see a very sharp rally. "If they begin to bottom out here and even managed to claw their way back a little bit, that may well be a good indication that liquidity conditions are improving," he said. Bitcoin rally Howell believes cryptocurrencies are "extremely liquidity sensitive" and might be one of the first indicators of changing conditions in financial markets. FTX CEO Bankman-Fried told investors that the company is facing a shortfall of up to $8 billion from withdrawal requests and needs emergency funding, CNBC reported on Thursday. "We have maximum liquidity tightness right now, and central banks are actually thinking about squeezing even more." "What you're going to start to see is more road crashes as time goes on," the bond fund manager added, referring to the crisis facing cryptocurrency exchange FTX, which is on the verge of collapse. "They're completely connected," he said and warned investors that prices will likely fall further in the near term. The decline comes as $29 trillion of liquidity has been pulled out of the financial system over the same period, according to Howell. According to Coin Metrics data, it was trading around $16,359 on Thursday. Bitcoin, for example, has lost about 75% of its value from its all-time high of $67,130 in October 2021. Howell, a fixed income manager overseeing more than $1 billion in assets, said cryptocurrency values had declined recently because central banks worldwide have drained liquidity from financial markets by raising interest rates. + breaking a closely-watched psychological barrier as ethereum, BNB, XRP, solana and cardano crash. One key thing is needed for a rally in bitcoin prices, according to Michael Howell from Cross Border Capital: liquidity. The bitcoin price has dropped below 20,000 per bitcoin for the first time since late 2020 and. Personal Loans for 670 Credit Score or Lower + thats hit ethereum, BNB, XRP, solana, cardano and dogecoin. Personal Loans for 580 Credit Score or Lower The bitcoin price has crashed under 20,000 for the second time this month, sparking a crypto crash. Each time it has bounced back to a new all-time high within a couple of years. Best Debt Consolidation Loans for Bad Credit Over the last decade, bitcoin has fallen in value by 50 per cent or more on six occasions.
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