Main navigation

Bitcoin May Continue to Suffer, Says Ark Invest Analyst

Mon, 07/04/2022 - 15:58
article image
Alex Dovbnya
ARK Investment Management's Yassine Elmandjra believes that Bitcoin may face another correction despite "stable" fundamentals
Bitcoin May Continue to Suffer, Says Ark Invest Analyst
Cover image via
Read U.TODAY on
Google News

Yassine Elmandjra, analyst at Cathie Wood's ARK Investment Management, believes that risk assets such as Bitcoin may continue to suffer because of unfavorable macro conditions.

In a recent Twitter thread, Elmandjra has not ruled out that the Federal Reserve will continue hiking interest rates despite looming recession fears. In such a case, the price of the largest cryptocurrency is likely to decline further despite the fact that it recently recorded its worst quarter in more than a decade.

Unrealized net losses (NUPL), which have dropped 17% below the aggregate cost basis, also show that Bitcoin might suffer another correction. According to Elmandjra, NUPL plunged to roughly 25% near the bottoms of the previous market cycles.

Ethereum's AUM Nearly Halved in June: Report
With that being said, Bitcoin has dipped below its 200-week moving average (WMA) on the short-and-long-term cost basis for the first time in its history. This suggests that the crypto king could be trading near another "generational bottom," according to Elmandjra.

Image by @yassineARK

Bitcoin's main fundamentals, such as network security, network usage, and holder behavior, "appear to be stable" despite the massive shock experienced by the industry due to the collapse of such high-profile players as Terra, Celsius and Three Arrows Capital.

Bitcoin's "Puell Multiple," one of the key indicators tied to miners, has dropped to its lowest level in three years. This might indicate that Bitcoin is likely bottoming out since the value of the newly issued coins is relatively low compared to average numbers.

Bitcoin is currently sitting at the $19,600 level on major spot exchanges after adding roughly 2.9% over the past month.

article image
About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at