• Bitcoin and select altcoins are showing signs of starting a sustained recovery over the next few days.
• The crypto bear market of 2022 could start a handover of crypto technology and blockchain infrastructure to steadier hands.
• Crypto markets are yet to make a decisive move higher, due to fears regarding Digital Currency Group’s liquidity issues and the US Federal Reserve’s upcoming meeting.
The cryptocurrency markets have been in a state of flux in the past few months and investors have been eagerly awaiting signs of a sustained recovery. Bitcoin (BTC) and select altcoins have been showing signs of optimism in recent days and it appears that the much-anticipated resurgence of the crypto market may be just around the corner.
The optimism stems from the outlook of the United States Federal Reserve, which is scheduled to hold its next meeting on Feb. 1. Market participants are expecting the U.S. central bank to slow down and hike rates only by 25 basis points. This could be a positive sign for the crypto markets, as it could provide the necessary momentum for a sustained rally.
However, the crypto markets are yet to make a decisive move higher. This could be due to renewed fears regarding Digital Currency Group’s liquidity issues, which have again come into focus after Gemini co-founder Cameron Winklevoss penned an open letter to DCG CEO Barry Silbert on the alleged $900 million that Genesis owes Gemini.
Nevertheless, despite the uncertainty, there is still a lot of optimism surrounding the future of the crypto markets. Circle’s chief strategy officer and head of global policy, Dante Disparte, wrote in a Jan. 2 post for The World Economic Forum that the current crisis in the cryptocurrency space may eventually prove to be a boon. Disparte believes that the crypto bear market of 2022 could start “a handover of crypto technology and blockchain infrastructure to steadier hands.”
Looking at the technical charts of the top 10 cryptocurrencies, it appears that the markets are starting to show signs of life. Bitcoin (BTC) has been trading close to its seven-month high and Ethereum (ETH), Binance Coin (BNB), XRP (XRP), Dogecoin (DOGE), Cardano (ADA), Matic Network (MATIC), Polkadot (DOT), Litecoin (LTC) and Uniswap (UNI) are all trading around their key resistances.
If the bulls can push the price above these resistances, it could lead to a sustained recovery in the near future. Until then, investors should remain cautiously optimistic and keep an eye on the U.S. Federal Reserve’s upcoming meeting to gauge the outlook of the markets.