Crypto Market Outlook: Expert Predicts Bitcoin and Major Altcoins Will Rebound in Q3 2023

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After more than eight weeks of trying to rally above $31,000, Bitcoin bulls succumbed to medium-term selling pressure. According to the latest crypto market data, the price of Bitcoin fell nearly 5%, hitting a monthly low of around $26,188 at the start of the London trading session. Similarly, Ethereum (ETH), the second most valuable digital asset by market capitalization, also saw a decline of 5%, trading at around $1,759 at press time.

Crypto Market Cap Drops, Bitcoin Dominance Declines

As a result, the total crypto market capitalization fell by around 3.3%, standing at around $1.14 trillion on Friday, May 12. the long-awaited altcoin season is about to materialize.

Consider Both Views: Bitcoin Price Prediction: BTC Price Will Hit New All-Time High in 415 Days, Crypto Analyst Coinpedia Fintech News Predicts

Volatility expected to rise as global recession fears grow

Given the growing likelihood of a global recession amid rising inflation, experts predict a significant increase in crypto volatility in the coming months. The debt ceiling debate in the United States has left the Federal Reserve torn between implementing monetary tightening policies to achieve a 2% inflation target. Additionally, traditional banks are grappling with the challenges posed by the web3 industry and other fintech companies, which have been behind recent bank runs.

Related: Can Crypto Markets Survive a Massive US Recession? Coinpedia Fintech News

Short Compression Looms

Over the past 24 hours, over 82% of long traders in the crypto market have been liquidated, according to reports from Coinglass. Therefore, these traders are likely to focus on short selling, potentially fueling a long squeeze. As a result, the crypto market may see a further decline in the coming days due to the increase in panic selling.

The future is bullish

Renowned trader and investor @CryptoTony_ on Twitter expressed optimism about the long-term outlook for the crypto market, suggesting a potential rebound in Q3 2023.

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