Bitcoin is on the rise — but… don’t get your hopes up!

Investment director of Guggenheim Partners Scott Minerd believes this is a good time for cryptocurrency traders, but the current growth of Bitcoin may make way for an even greater fall. We collected some sound opinions in this article — and the short version is: do not relax as yet, the market is still unstable.

It’s too early to be excited about the recovery

In an interview with Bloomberg, the well-known banker said that despite the growth of cryptocurrencies, it is dangerous to invest in them for a long time yet. However, short-term traders can profit significantly from the temporary Bitcoin price growth.

The businessman believes that the further fall of cryptocurrencies will eliminate weak projects and make the crypto industry healthier. Earlier, we quoted expert Ruchir Sharma, who also thought that crypto winter is not over yet and will help eliminate many greedy speculators who flooded the crypto market.

The investment director at Guggenheim Partners highlighted that regulators worldwide continue to pressure the cryptocurrency industry. In addition, large and well-known financial institutions continue to stay away from digital assets, so don’t be under any illusions about the supposedly started bitcoin rally.

Scott Minerd said:

“I think it’s going to deflate further, and I think we are going to have something akin to the collapse of the internet bubble to have a chance to sort out who are the winners and who are the losers here. I don’t think we’ve fully flushed out the system yet.”   

Other analysts also confirm that we should not relax, looking at the unexpected rise of Bitcoin this week to $24,000. In particular, Barrons cites its analysts saying that further growth is unlikely. Most probably, the price will decrease or stagnate at current levels.

Good week for crypto

As a reminder, bitcoin is currently trading above $24,000. Over the past two weeks, Bitcoin’s price has risen 8% sequentially, giving hope for a market reversal. Bloomberg analysts estimate that if the trend continues over the coming weekend, July could be the best month of recovery for leading digital currencies since 2021.