There’s a chance crypto winter could be over, Edward Moya, senior market analyst at foreign exchange Oanda, told CoinDesk TV on Tuesday.
Some crypto investors are beginning buy more bitcoin (BTC) and other cryptocurrencies, despite recent bad market news, he said.
“I think you’re seeing that more of the hodler money is starting to increase their exposure and add to their positions. There is a chance that the crypto winter could be over,” he said during “All About Bitcoin.”
He spoke after last week’s market wipeout, which dashed hopes of an immediate bitcoin price recovery from the market crash earlier this year. Analysts at the crypto research firm Delphi Digital wrote Monday in a report that if bitcoin follows the pattern from previous historical price cycles, it might fall as low as $10,000 before finally heading higher.
The key is whether bitcoin “continues to show” that it won’t reflect “stock market weakness on steroids when we have risk-aversion days,” Moya said.
Crypto may not be out of “choppy” waters for the next few months, Moya added. But if risk appetite for bitcoin continues to grow, “we could see the momentum really come into place and take crypto much higher.”
Moya’s comments come ahead of the Federal Reserve’s economic symposium in Jackson Hole, Wyoming, where Fed Chair Jerome Powell is expected to give a speech addressing inflation on Friday.
“The majority of Wall Street, especially hedge funds, [are] anticipating some pain in the stock market” after Powell’s remarks, which could give a hint as to how high the next interest rate hike could be. That, in turn, could “weigh on crypto,” Moya said.
Read more: Bitcoin Plunges Most in 2 Months, Dashing Recovery Hopes
