A popular crypto analyst says that the recent market pullback means there are bargains to be had but cautions that today’s Federal Reserve policy meeting is likely to have a significant impact across all asset classes.
In a new strategy session, Nicholas Merten tells his 503,000 YouTube subscribers that leading smart contract platform Ethereum (ETH) and two of its competitors have fallen in price to a discount range that could present opportunities for the bulls.
“Ethereum is down 55.77%, similar to the range we saw back here in May.
Solana. No matter how you feel about these protocols, I gotta say I’m liking Solana a lot more at a 68% discount around this $80 to $90 range than buying it up at $253 per token.
You’ve also got Avalanche here as well. Another major layer-1 protocol down from nearly 150 bucks down toward $50, a near two-thirds correction in value, buying it at a near 66% discount.”
Ethereum rang in the new year valued at $3,730 but has witnessed a series of price drops, now down a total of 29.8% and trading for $2,620.
Layer-1 blockchain protocol Solana has fallen 43% in 2022 from $173.62 to $99.10, while smart contract platform Avalanche is trading for $70.46, a 36.4% drop from its January 1st price of $110.70.
Merten also says that if the Federal Reserve announces that it intends to raise interest rates beyond 0.25% to perhaps 1%, negative sentiment will likely affect both crypto markets and equities.
“If the Federal Reserve does actually stick to its word, if it actually goes about hiking interest rates this go-around and showcases that in this meeting or the next few meetings that it’s not kidding around, it doesn’t matter what asset markets think or how they react… it will cause further sell-side pressure in Bitcoin… and in equity markets, which have already taken a hit.”
On top of the Fed’s anticipated decision, the DataDash host says that Bitcoin (BTC) truly is at a critical juncture.
“[The Fed meeting] is probably going to be the spearhead that leads us towards either rallying up toward that $150k, $200k range that we’ve been talking about in the past or is going to drag us down into what might potentially be a bear market. Not just for crypto, but for all assets alike.”
Bitcoin has been on an extended downtrend since reaching an all-time high above $69,000 back in November. It is down 19.3% this month alone, trading for $38,185 from its New Year’s Day price of $47,292.
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