Daily Crypto News

Karan Sharma, COO, Zelta Tech Positions Crypto as Bullish Amid ‘Crypto Winter’

The cryptocurrency market has seen a drastic fall in market capitalisation from $3 trillion to $947 billion. When we look at the market, the market reports appear to be bad for the next two years for cryptocurrencies. Lastly, the Fed had a two-day meeting. They decided to increase the interest rate by 75 BPS, affecting the cryptocurrency market. On contrary, the big adopters in real estate and stocks seemed to move their money in crypto.


Karan Sharma while talking about the same stated, “The bear market and the increased interest rate is an advantage for the crypto industry. Crypto is one of the industries where the money comes from because it is a growth asset. Seeing people getting bullish in the industry, despite the market having showing minor bear runs, entrusting people for the scaling meteoric market capitalisation.”

“On the contrary, if we see the market was shocked by the new dot plot released by the Fed, where they tend to increase to 4% from 3.25% at the end of the year. Fed aims to increase the interest by 100/125 BPS according to the market opinion. But at first, Fed clears the fog and clarifies that they are not in the state to make such a move. And to my knowledge, there was only an 18% chance of such an event happening.” Karan Sharma further added.

With the increase in BPS, the market was bullish, where XRP was bullish with 29% gains, followed by Ether, Cardano, Doge, and Solana with 7% and more surge in price. When we look at the global cryptocurrency market capitalisation, it was trending at $953.6 Billion, with an increase of 5% in the past 24 hours.

Amid the increase in interest rates, the new dot plot chart values moved drastically upwards. By 2023, the Fed clearly shows that the rates might surge by 1%, indicating that Fed is still aggressive toward the market. As the Fed is more likely to increase the interest rates, it can be bad news for stock and real estate, but the cryptocurrency industry might not suffer as heavily as stock and real estate.

During the same period, the Fed announces that the US will enter a recession in 2023 which created a panic situation in the market. When we look at the past, market movers have suffered but also potentially handled the situation. But now the scenario is entirely new. Fed also aims to lower the interest rates from 2023 and inflation back to 2.50 on a long-term basis.

Karan Sharma said, “Seeing the US entering recession is the only open opportunity for people to invest in cryptocurrency. The point of investing in cryptos as a yield-generating asset will surely upshoot the investments made by every individual by a minimum of 7%, but the ones who miss the opportunity will exacerbate their investments in either stocks or real estate.”

“For now, the market is highly volatile. The sellers are on vacation. Meanwhile, the buyers are trying to push the market upward. But we are not supposed to get trapped in the illusion of seeing green candles moving upwards. There is a moment when the sellers will take the charge and we will see the market crashing to make the lowers lows”, Karan Sharma continued.

The market is uncertain at the moment, and the Fed is aggressively tracking and collecting money from the market. The major lower lows are not been hit yet, but the moment it happens, it will open the doors for investors to settle for no less than crypto.

Disclaimer: This is a sponsored post, and the views expressed are those of the sponsor/author and do not represent the stand and views of THE WEEK.

Read More: Karan Sharma, COO, Zelta Tech Positions Crypto as Bullish Amid ‘Crypto Winter’

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