Analysts at the DeFi Report research company said that the cryptocurrency market has entered the final phase of the current bear cycle. According to experts, about eighty-five percent of this period is already over, and the further development of the situation will directly depend on global economic events. According to the report, the current dynamics of bitcoin and altcoins in many ways resembles previous historical periods of market bottom formation. At the same time, the total volumes of spot and futures trading have dropped to their lowest levels since the end of 2000. An additional negative factor for the market was the noticeable sales of bitcoins by miners, some of whom are simultaneously reorienting their energy capacities to service the infrastructure for artificial intelligence.

Among the main macroeconomic factors of pressure on risky assets, analysts highlighted a noticeable increase in the yield of thirty-year Treasury bonds of the United States. This figure exceeded five point two percent, reaching its highest levels in the last twenty years. The current monetary policy of the Federal Reserve System continues to have a serious impact on the market. At the same time, experts paid close attention to the steady increase in the price of gold by fifteen percent with continuing global inflationary risks. According to experts, this reflects the steady demand of investors for traditional protective assets in conditions of increased economic uncertainty. A further increase in global liquidity can lead to a significant influx of capital back into the market of the first cryptocurrency.

Earlier, analysts at the large British company Wintermute also stated that the crypto market is showing signs of ending a protracted bearish phase. Experts noted that the largest cryptocurrencies have maintained noticeable stability against the background of serious macroeconomic shocks.

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The material has been prepared solely for informational purposes and does not constitute financial advice or recommendation.