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Chief strategist sees ‘no upside catalysts’ for crypto as BTC yet to sink into a recession

Chief strategist sees ‘no upside catalysts' for crypto as BTC yet to sink into a recession

As the cryptocurrency market continues to struggle with the bearish sentiment that has prevailed in recent weeks, some experts believe that it is still not in the clear and that the unfavorable situation may continue in the near future.

One of these experts is Meltem Demirors, the chief strategy officer at a $5 billion worth crypto asset management company CoinShares, who expressed her organization’s view that “we are going to stay where we are for a while” in an interview with CNBC’s Squawk Box on July 11.

‘More pain ahead’

According to Demirors, more trouble can be expected across different markets as there’s an evident lack of upside catalysts in the face of other unfavorable large-scale factors. As she explained:

“There are no near-term upside catalysts. We have yet to see Bitcoin in a recession. Arguably, are we in a recession? We don’t know, but with what’s going on in the Eurozone, around the world, and in the United States, the Fed hiking rates and cutting back on their open-market activities, certainly expect more pain ahead for tech stocks, growth, and also crypto.”

Commenting on the current situation in these markets and its possible impact on the future, she highlighted that:

“We obviously had a lot of liquidation, a lot of insolvencies that had a massive impact on the market (…). We’re talking about $10, $20, $30 billion of capital evaporated overnight – liquidity that’s gone out of the system.”

Demirors concluded that “we haven’t yet seen the full impact of that because most of the companies in this industry are not publicly listed, so we don’t get that transparency we normally see.”

Bearish Bitcoin sentiment on Wall Street

Meanwhile, Wall Street investors are generally bearish on Bitcoin (BTC), as they believe it will depreciate significantly and is more likely to hit $10,000 – which would drop its value by almost half – than recover back to $30,000, as Finbold reported earlier.

At press time, the price of the flagship digital asset stood at $20,489, which is a loss of 3.50% over the previous 24 hours but still represents a 4.53% gain across the week, as per CoinMarketCap data.

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