Analysts are divided on the short-term prospects of bitcoin and cryptocurrencies as the market stabilizes.

With the Bitcoin (BTC) and cryptocurrency markets appearing to have stabilized since last week’s brutal crash caused by the Collapse of Terra (LUNA), analysts offer their views on where the market can go next. And, as usual, opinions are divided: some predict the end of the bear market, while others argue that we are still in the early stages of the Fed’s tightening cycle.

Perhaps the most optimistic about the digital asset space among analysts from traditional finance was a group of analysts led by Alkesh Shah from Bank of America .

On Tuesday, in a private note to clients, Shah said concerns about the so-called crypto winter have no basis other than the negative impact that currently comes from the correlation of cryptocurrency markets with stocks.

The note states that crypto assets are still trading as an emerging tech asset class, similar to fast-growing assets with speculative risk. He added that cryptocurrency thus suffers from the same headwinds as traditional assets, including higher interest rates, higher inflation and the growing risk of a U.S. recession.

Transforming bubbles

Notably, Bank of Americas’ decision differed from that of a Zurich-based private bank. Julius Baer Group . According to a Bloomberg report, the bank’s CEO Philipp Rickenbacher said during a presentation to investors on Thursday that we can observe the moment of the explosion of the bubble in the crypto industry.

Despite the bleak short-term outlook, Rickenbacher still maintained a positive outlook on the long term, saying we all know what happened after the dot-com bubble. []which paved the way for the emergence of a new sector that really changed our lives.

Rickenbacher’s comments came a day after one of the most prominent cryptocurrency investors, the CEO. Galaxy Digital Mike Novogratz, for the first time in 10 days, spoke about the collapse of Terra and its algorithmic stablecoin terraUSD (UST).

After Novogratz’s initial comments, the investor went to Twitter again today, sharing a pessimistic forecast for the near term:

One of the problems with risk modeling is that all the examples of stress over the past 3 decades that have led to the fall occur in a weakening environment. [ Федеральной резервной системы США ], quoth Novogratz .

He also stressed that we are still in the early stages of the Fed’s policy tightening cycle, and said that this means that trust in models and even intuition should be lower.

There are no scenarios in which MicroStrategy will sell BTC

Meanwhile, while offering some confidence to at least bitcoin investors on Wednesday, a U.S. enterprise software company. MicroStrategy , which has 129,218 BTC ($3.8 billion) in its reserves, said it would not change its BTC strategy despite market turmoil.

We currently have no intention of selling, Andrew Kang, the company’s new CFO, told the Wall Street Journal.

I don’t know of any scenarios in which we would sell, he added.

What’s more, Kang agreed with Bank of America analysts, who argued that the recent downturn in the bitcoin market has little to do with bitcoin itself.

According to Kang, some recent volatility has certainly been due to activity outside of Bitcoin. He added that the company is tracking this from a market perspective, and said that [нет] nothing fundamental to Bitcoin, which we think presents any problems against our strategy.

Bear Market Looks Over

Also optimistic about the prospects of cryptography Yves Lamouret, president of the research firm Lamoureux Co. specializing in macroeconomic research.

“I see extreme [негативные] sentiment on the part of crypto holders, just as we have seen on other grounds,” Lamure was quoted as saying in a newsletter by Yahoo Finance. “Instead of one big swoon, bitcoin broke it into two pieces, creating a smaller downturn than the traditional drawdown. It looks complete from a bear’s point of view.it’s the market,” he added.

I plan to keep it for quite a long time.

Finally, speaking to CNBC on Thursday, Peter Smith, CEO and Co-Founder Blockchain.com , said that there is currently a leaching of risk and leverage in all financial markets, and said that this has been particularly strongly felt in cryptocurrency lately. a few weeks.

According to Smith, this is going to be a very long process of adoption and growth, so when you think about a cryptocurrency position, you need to gradually average and plan to hold it for quite some time.

As of 16:41 UTC, bitcoin was trading at $30,230, up 4% in the last 24 hours and nearly 6% in the last 7 days. At the same time, Ethereum (ETH) was worth $2,017, up 3% from a day earlier, but still down more than 2% in a week.