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Crypto market is headed for a ‘major correction’, hints financial markets expert

Crypto market is headed for a 'major correction', hints financial markets expert
Jordan
Major
4 months ago
3 mins read

In light of the current volatility in the cryptocurrency market, experts are expressing their opinions on which route digital assets will go in 2022.

Speaking with FOX Business, Andersen Capital Management chief information officer Peter Andersen discussed the expected Federal Reserve (Fed) interest rate increases and his perspective on cryptocurrencies.

Given that the cryptocurrency market cap has shrunk by $147 billion in the last 24 hours, with Bitcoin falling 8% and Ethereum falling below the $3,000 mark as the Fed considers a possible review of central bank digital currency (CBDC), Andersen believes that “crypto is headed for a major correction.”

According to the chartered financial analyst:

“I think crypto is headed for a major correction. I don’t know when but hardly anybody understands the mathematics behind it. 

He added:

“You ask most leaders that are bragging about crypto as being the next best thing. If you ask them any more detail about that, they really do stumble in terms of trying to tell you what the fair value is. Because it’s totally different if I dare say, asset class. We need a lot more work on that and a lot more disclosure.”

Experts are divided on volatility

It’s worth mentioning that Anderson pointed out a whole generation of investors that haven’t been through the Fed rate hikes and are not sure how to navigate through them in the market.

The market expert takes the somewhat contentious view that he does not truly think that rising rates have a greater influence on growth than on value. As a result, Andersen is opposed to jumping into value and selling growth but still does not feel that there is any value in cryptocurrency.

Conversely, Mike McGlone, a senior commodities analyst at Bloomberg, has argued that the recent volatility in the 2022 market shows Bitcoin’s significance in the current digital assets revolution.

In his opinion, the volatility demonstrates the dependability of Bitcoin and Ethereum in cryptocurrency dollar transactions, which are critical to the industry’s growth. 

“Some purging of crypto-asset excesses at the start of 2022 shows the underpinnings of the three stalwarts Bitcoin, Ethereum, and the proliferation of crypto dollars. The nascent dollar transaction technology is a significant advancing part of the revolution in digital assets,” said McGlone.

Ultimately, McGlone considers that the large inflow and outflow of cash from the two assets demonstrate the degree to which the crypto dollar economy is growing.

Watch the video: Financial market expert says crypto headed for a ‘major correction’

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Jordan Major
Author

Jordan is an investor and market analyst. He's passionate about stocks, ETFs, blockchain, and digital assets. At Finbold.com, he delves into the technicalities to obtain future trends for new market traders and gives insights into user-friendly platforms for beginners.

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