Analysts warn of approaching crypto winter

The cryptocurrency market is once again showing signs of instability, so analysts are increasingly warning of the risk of a new «crypto winter.» According to Barchart expert Rob Isbitts, technical signals point to the likelihood of further declines in digital asset prices in the coming weeks.

One of the key indicators is the growing correlation between the major cryptocurrencies. Isbitts notes that after the launch of spot bitcoin ETFs, including the BlackRock IBIT fund with assets of more than $ 85 billion, the market initially grew by 50%, but later lost about 25%. Similar dynamics were observed at the beginning of the year, when capital outflows from cryptocurrency funds increased.

The PPO (Percentage Price Oscillator) technical indicator used by Isbitts signals an increased likelihood of further bitcoin decline. Ethereum is showing a similar trend, increasingly repeating the movements of the main cryptocurrency. For riskier assets such as Solana, the consequences can be even more profound: when bitcoin fell by 15%, the Solana futures ETF SOL $184.36 Binance-Peg SOL -0.40% Market capitalization $0.2 billion VOL. 24 hours $0.86 billion lost twice as much.

The analyst also draws attention to the changing behavior of gold. While it used to be considered the «anti-dollar,» now, amid rising central bank reserves, gold is once again playing the role of a «safe haven.» Its dynamics are increasingly coinciding with the movements of cryptocurrencies, which may indicate a change in investment strategies on a global level.

Despite the volatility, Isbitts emphasizes that bitcoin BTC $107,781.00 Mezo Wrapped BTC 0.20% Market capitalization $36.55 million VOL. 24 hours $4.24 billion has historically demonstrated the ability to update highs. At the same time, he suggests that the next stage of growth is likely to start from lower price levels. At the time of publication, bitcoin was trading at $ 112,900, having added about 3% in Tuesday’s morning session.