The global crypto market fell on Tuesday after a brief comeback, as concerns about inflation continue to weigh on riskier investments. Despite the dip, Bitcoin held above $17,000 and Ethereum remained above $1,250. Investors are closely watching US macroeconomic data for hints on interest rate increases
Only Litecoin, Shina Inu, and Tron were trading higher. Litecoin rose by 4% while Polkadot fell by 3%. Ethereum, BNB, Dogecoin, and Polygon dropped 2%.
The worldwide cryptocurrency market cap gained 2% in the past 24 hours, to $866 billion. Trading volume rose 9% to $33.10 billion.
2022 was a difficult year for the cryptocurrency market, with investors like Jim Cramer advising to sell bitcoins. Cramer warned investors to dump cryptocurrencies before 2023, stating that it’s never a good idea to sell at a high price. With 2023 on the horizon, analysts are forecasting whether the crypto market is destined for a massive rally or a “zero”.
‘It’s Never too Late to Sell’
Using microeconomic considerations, the analyst predicted the path of the crypto market in 2023. After FTX bankruptcy, attention has turned to the crypto industry, leading to significant losses in a market where interest rate hikes have impacted digital assets.
According to the analyst, digital assets are speculative coins and Sam Bankman-Fried is a con artist. He pointed out that Bankman-Fried didn’t keep any records, which is prohibited, and questioned why the US attorney would believe him.
Given the uncertainty, the analyst advises investors to sell their digital assets as soon as possible. However, he also notes that increasing interest rates could potentially benefit the crypto market. A coin’s inflated market cap shouldn’t fool investors, he says.
Which Assets Shall Be The Most Impacted By A Recession?
To conclude, Cramer mentioned several prominent cryptocurrencies and implied that they would fail during the forthcoming economic downturn. He predicted that the prices of Ripple (XRP), Cardano (ADA), Polygon (MATIC), and Dogecoin (DOGE) would continue to drop and even reach $0.
He further explained, “There’s still a whole industry of crypto boosters trying desperately to keep all of these things up in the air – not too different from what happened with bad stocks during the dot-com collapse,” referring to Tether, a so-called stablecoin that is rumored to be pegged to the dollar, and its $65 billion market cap.
However, despite the bearish outlook, Bitcoin and other key altcoins have remained stable throughout the crypto winter, leaving the overall analysis uncertain. BTC and ETH have shown recent improvements, and digital assets are still seen as a good way to diversify from gold.