Crypto H2 outlook: More pain or recovery?

Bitcoin, the predominant cryptocurrency globally, has been facing a tumultuous period in trading recently, with prices dropping below the $60,000 mark for the first time since May. To gain insights into the future of the wider asset category in the second half of the year, Mazen Salhab, Chief Market Strategist for the Middle East and North Africa at BDSwiss, shared his thoughts in an exclusive interview with CNBC Africa. Mazen Salhab highlighted the speculative nature of the crypto market, emphasizing that it is currently driven by speculation and market sentiment rather than fundamental factors. He pointed out that the recent price drops in Bitcoin and other cryptocurrencies are a result of aggressive selling, leading to a significant decline in market capitalization. Despite the downward trend, Salhab noted that there have been no fundamental changes in the crypto market, indicating that the recent price movements are driven by speculation. Looking ahead, Salhab provided a range for Bitcoin's trading period, suggesting that the cryptocurrency could fluctuate between $50,000 and $73,000. He emphasized the importance of global adoption and regulatory developments in shaping the future outlook for cryptocurrencies. Salhab mentioned the significance of geographical factors, noting that strong regulation in locations like Dubai is favorable for Bitcoin. He also touched upon the potential impact of expected US interest rate cuts on the cryptocurrency market, stating that unless there are aggressive rate cuts by the Federal Reserve, the impact on crypto assets may be limited. Additionally, Salhab discussed the Ethereum ETF hype and its subsequent price movements, highlighting the need for sustained inflows to drive significant price increases. Despite the current market volatility, Salhab remained optimistic about the long-term prospects of crypto assets, albeit cautioning that the road ahead may be challenging. In conclusion, Salhab suggested that while the short-term outlook for cryptocurrencies remains uncertain, the long-term bullish sentiment prevails. The future of the crypto market is expected to be a bumpy ride, with potential price fluctuations amid regulatory developments and global adoption.