The rise in interest rates by the Federal Reserve and inflation-frightened investors have caused a massive sell-off of assets, which has contributed to the slump in the cryptocurrency market. The year has been difficult for the cryptocurrency industry.
The largest cryptocurrency in the world, Bitcoin, has significantly dropped from its November 2018 highs, and some experts believe it will continue to plummet.
Bitcoin Relief Rally On Horizon
A CNBC personality named Jim Cramer has predicted favorably about Bitcoin (BTC), stating that the top asset class will experience a jump in value in the coming few months.
By examining a graphic that Tom DeMark gave, Cramer came to the conclusion that Bitcoin will have a catharsis in the near future and would rise above the levels at which it is presently trading.
Given the fact that Cramer does not anticipate Bitcoin hitting its prior highs of over $69,000 in the near future, he is optimistic that a “good relief” is on the way for BTC investors in the coming months.
“I can’t contemplate acquiring cryptocurrency now, but if you still have some and want to trade, I’m speculating that from here, if there is another dive down, you might get a better price to sell,” Cramer said.
More BTC Analysis from Cramer
The host of CNBC’s Mad Money remarked that DeMark, the founder, and CEO of DeMARK Analytics, has over the years built a 13-step buy-and-sell countdown that enables him to determine the peak and bottom of the largest cryptocurrency.
DeMark’s most recent graphic was broken down by Cramer, who also looked at Bitcoin’s performance since April 2022.
Several of DeMark’s chart patterns, as per CNBC host, move in parallel directions before the buys and sales eventually exhaust one another.
After further examination, Cramer discovered a crucial feature in the graph that demonstrated that Bitcoin never fell by 50% from 2020 until recently because of the demise of the Terra ecosystem tokens and the rise in inflation.
“When there is such a severe downturn, the asset typically experiences structural damage. If you’re considering the long term, you should know that it might take decades, or possibly many years, for bitcoin to regain its former highs. We may lose track of them forever,” Cramer said.
Cramer has long been a proponent of Bitcoin and has exhorted people to participate in the asset class. The CNBC host suggested investing in Bitcoin to an American who won a $731 million lottery last year.
Bitcoin at the Previous ATH Are Refuted by Cramer
Since the creation of the asset class, Bitcoin has experienced a significant drop. The cryptocurrency dropped to $20,000 from approximately $46,000 at the beginning of the year.
While there are several reasons for BTC’s sharp decline, investors are hopeful the asset class would rise to its previous all-time high (ATH) of $69,047. However, Cramer does not believe this will happen anytime soon.