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The pseudonymous host of Coin Bureau is warning that the prices of crypto assets are primed to fall further.
Guy tells his 2.09 million YouTube subscribers that the recent recovery rally will likely be short-lived.
“If crypto’s current price action didn’t make it clear enough, the massive purge we saw in the second quarter has set the stage for a serious recovery rally which we’re arguably in.
However, it’s only a matter of time before the markets realize that all the macro factors which caused the recent crypto crashes haven’t been resolved, and this could take crypto to new lows.”
According to the Coin Bureau host, crypto assets have yet to hit “peak capitulation” as total panic is yet to be experienced.
“In fact, you could make the argument that crypto hasn’t seen peak capitulation. And not just because many institutional investors like Kevin O’Leary believe we haven’t seen total panic yet.”
Guy says that various metrics such as trading volumes, the number of decentralized finance (DeFi) users and the Bitcoin (BTC) hash rate – an approximate computing power metric based on the hash rates of each network miner – suggest that the sell-off in crypto assets is yet to reach the historical proportions associated with peak capitulation.
“Although crypto prices have taken a beating, recall that the number of daily DeFi users has remained relatively stable by comparison, that trading volumes have barely budged and that Bitcoin’s hash rate continued to climb even while BTC’s price crashed.
If what we saw over the last half year had truly been maximum pain, then it stands to reason that all these metrics would have fallen by much more.”
According to the Coin Bureau host, the current recovery rally will end in September due to various factors such as Ethereum’s (ETH) major upgrade materializing.
“If you’re wondering when the current recovery rally could end, my bets are on mid to late September when Ethereum’s merge is expected to occur and when the Federal Reserve will return from its summer holiday with what’s likely to be a fresh rate hike to fight inflation.
Speaking of which, autumn is also when many parts of the world could start to face skyrocketing energy costs in anticipation of oil and gas shortages over the winter. Something that would almost certainly do serious damage to assets across the board.”