What to expect on the crypto market in May 2022? Expert forecast

At the moment, the price of BTC, which is essentially an indicator of the entire digital market, is not far from the March lows. The dynamics is similar to the index reflecting the dynamics of US technology companies Nasdaq, whose quotes also returned to local lows by the end of the month. Both instruments have been in a correction state since November: the main cryptocurrency has lost a little more than 40%, and the stock index – about 20%.

According to Aaron Chomsky, head of the investment department at ICB Fund, the point is that they belong to the same group – risky instruments.

“If we look at the so-called growth stocks more closely, we will notice that many of them have lost about 50-60% of their maximum prices by the current moment. In other words, the situation is very similar to what is happening in the cryptocurrency market,” says Aaron Chomsky.

The main question is when exactly will the fall stop and recovery begin? As before, he remains unanswered. However, gradually preparing for a reversal is possible now. Of course, the risks remain at extremely high levels: the tightening of the Fed’s policy, expectations of a recession in the global economy, etc., which means that it is now approaching the formation of the portfolio with the utmost caution.

“It is worth buying only the most reliable assets – coins of projects backed by big capital: Solana, Polkadot, Elrond and the rest, whose quotes are relatively far from the highs. It is better to start with a small amount so that you can buy more coins in case of further drawdown”, – the expert clarifies

According to the head of the investment department of ICB Fund, there are still no special hopes for a change in sentiment in May, as a result of which further sideways movement with a test of new lows looks most likely, which will not only allow you to purchase assets at attractive prices, but also opens up scope for short-term speculative operations.

“An important range is $33-39k, where large buyers accumulate positions. These actions are not performed in order to drain coins during the first small bounce, but to make a profit of 100% or more, which is much more suitable for the cryptocurrency market. That is why hopes for a new round of growth in the coming months remain – the purchased coins must be distributed,” the analyst sums up.

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