Market strategist says crypto has ‘no upside catalysts’

Bitcoin continues to hover just above the $20,000 price level, where bulls have been battling fresh downside pressure following the bounce from bear market lows of $17,600.

The crypto market is also in a similar sentiment zone, and what investors might be looking out for is whether the bottom is in. Of course, several market commentators and analysts warn of one possibility: the crypto winter could still have further downside legs.

Bitcoin is yet to see a recession

CoinShares, a leading digital assets management firm, believes the market may struggle to establish an upside movement.ย 

This view was shared by the companyโ€™s chief strategist officer Meltem Demirors, who told CNBCโ€™s Squawk Boxโ€™ that the current crypto market will likely persist for a while.ย 

โ€œFor us at CoinShares the view is [that] we are going to stay where we are for a while. There are no near term upside catalysts. We have yet to see Bitcoin in a recession,โ€ Demirors told CNBCโ€™s Andrew Ross Sorkin on Monday.

Whatโ€™s going suggests more pain

The strategist indeed expects the global macro environment to dictate fresh downturns across stocks and crypto.

โ€œArguably, are we in a recession? We donโ€™t know,โ€ she added, โ€œbut with whatโ€™s going on in the Eurozone, around the world and in the United States โ€“ the Fed hiking rates and cutting back on their open-market activities โ€“ certainly expect more pain ahead for tech stocks, growth, and also crypto.โ€

The CoinShares executive also noted that with a lot of liquidity squeezed out of the market following the crypto price crash, traders might yet be apprehensive of whatโ€™s coming next.ย 

According to the expert, the uncertainty is a strong indicator of near-term price movement possibilities, with more companies likely to hit turbulence before the market calms down.

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