At the time of writing, Bitcoin is trading up 5.8% at its current price of $3,460. Last week, Bitcoin fell to lows of $3,190, and appeared to find support in the low-$3,200 region. Today’s jump, although a welcome development, has only brought Bitcoin’s price back to last Thursday’s levels.
Today’s small market surge has brought the total market capitalization up to over $110 billion, off of its weekly lows of $100 billion. The crypto markets have not yet fallen below $100 billion throughout 2018, and today’s price movement proves that the bulls are not yet ready to surrender this market cap level to the bears.
Despite today’s move being a welcome reprieve from the seemingly endless price dives that have occurred over the past several weeks, one prominent analyst believes that further market downside is imminent.
While speaking to MarketWatch about Bitcoin’s recent price action, Stephen Innes, the head of Asia Pacific trading at Oanda, said the he sees further downside for the crypto markets in the near future.
“Looking at the hand that is dealt, we should expect crypto markets to trade lower until ultimately investors can justify and determine valuations. But even from a cross-asset play with global markets veering south the fact investors can’t pin an intrinsic value on BTC, in my view makes it even less appealing,” he said.
Despite having a pessimistic outlook in the near term, Innes recently spoke explained that he believes cryptocurrencies will “grind higher” over the next decade.
“I think cryptocurrencies will grind higher over the next ten years, and it’s not because of the buy orders from the nerdy libertarian cult, it will be because blockchain technology will be embraced,” he said in part.