Crypto Market Heading For ‘Major Correction’ Says Financial Markets Expert

[ad_1]

In light of the current volatility in the cryptocurrency market, experts are voicing their opinion on the path digital assets will take in 2022.

Speaking to FOX Business, Andersen Capital Management Chief Information Officer Peter Andersen discussed the planned Federal Reserve (Fed) interest rate hikes and his views on cryptocurrencies .

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

According to the Chartered Financial Analyst:

“I think the crypto is heading for a major correction. I don’t know when but hardly anyone understands the math behind it.

He added:

“You ask most executives who brag about crypto as the best thing to do. If you ask them for more details about it, they are really hesitant to tell you what the fair value is. Because it’s totally different if I dare say, the asset class. We need a lot more work on this and a lot more disclosure.

Experts are divided on volatility

It’s worth mentioning that Anderson pointed to a whole generation of investors who haven’t lived through Fed rate hikes and don’t know how to navigate the market.

The market expert takes the somewhat controversial view that he doesn’t really think rising rates have a greater influence on growth than on value. As a result, Andersen opposes jumping into value and selling growth, but still doesn’t believe cryptocurrency has any value.

Conversely, Mike McGlone, senior commodities analyst at Bloomberg, argued that the recent market volatility of 2022 shows the importance of Bitcoin in the current digital asset revolution.

In his view, the volatility demonstrates the reliability of Bitcoin and Ethereum in cryptocurrency dollar transactions, which are critical to the growth of the industry.

“Some purges of excess crypto-assets in early 2022 show the foundations of the three pillars Bitcoin, Ethereum and the proliferation of crypto-dollars. Emerging dollar transaction technology is an important part of the digital asset revolution,” McGlone said.

Ultimately, McGlone sees the large cash inflows and outflows of both assets as a demonstration of just how growing the crypto-dollar economy is.

Watch Video: Financial Markets Expert Says Crypto Heading For “Major Correction”

[ad_2]