Bitcoin trader says expect more chop, downside, then sideways price action for BTC this summer

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Discussing the state of the cryptocurrency market has been the dominant headline over the past few weeks as local non-crypto media blasted Bitcoin (BTC) and DeFi investors for investing in assets that have no underlying value. Meanwhile, crypto-savvy analysts and traders flock to the charts, looking for clues as to when the market is declining and reversing its course.

Novice investors are clearly nervous and few have predicted the demise of the booming asset class, but for those who have been around for multiple cycles, this new bear market is just another wildfire of deforestation that will eventually lead to a healthier ecosystem.

The next steps for the cryptocurrency market were a topic discussed in depth by Crypto Jebb, Cointelegraph contributor and independent market analyst Scott Melker. The pair spoke about their views on why Bitcoin’s value proposition remains strong and what price action for the best cryptocurrency might look like going forward.

Here’s a look at some of the key points discussed by Crypto Jebb and Melker.

Bitcoin is used as it was originally intended
Traders focus primarily on the spot price of Bitcoin and lament the fact that it does not act as the inflation hedge that many have promised, but Melker noted that its performance depends to a large extent on the country and the economic situation in which the individual lives.

Bitcoin could drop dramatically in terms of the US dollar, but when compared to hyperinflationary countries like Venezuela, or Nigeria, which has a large unbanked population, BTC has offered people a way to preserve the value of their money and transact in an open financial system. .

One of the biggest functions Melker highlighted is that Bitcoin is the number one real asset that has given people around the world the ability to opt out of the current financial system if it is not working for them.

According to Crypto Jebb, Bitcoin is thermodynamically sound, which means that it is defined as an asset that holds the energy that is put into the system and that it does not “leak” through things like inflation.

What direction will the market take?
Regarding the future of the market, Melker was keen to stress that while cryptocurrency adoption may not appear to be moving quickly to those who have been in the market for years, “Bitcoin adoption is faster than the internet. It’s the curve of a hockey stick that runs in a completely parabolic way.” .

Crypto Jebb and Melker suggested that the typical shift towards investing in cryptocurrency just needs more time because people are conditioned to invest in things like 401k or Roth IRAs and most investors are trained to fear risk.

In response to potential critics who might point to bitcoin’s volatility as a primary reason for avoiding cryptocurrency, Melker highlighted the difficulties that stock markets have faced recently, citing the underperformance of stocks such as Netflix, Facebook, PayPal and Kathy Woods’ ARK.

Melker said,

“Last month was the first time I saw research from Messari that said there is not a single place where you can put money in an asset class and store any kind of value. And if you stay in cash, you will lose 8% of your purchasing power doing that.”
Related: Deutsche Bank Analysts See Bitcoin Recovering to $28,000 by December

Expect more downside in the short term
According to Melker, the current state of the market is bad and in the short term, it is important to remember that “the trend is your friend” and that further declines are possible.

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