In a recent discussion, Dr. Andre Dragosh criticized the pessimistic outlook of some cryptocurrency investors, describing their negative sentiment as unfounded. He believes that the recent actions by major Bitcoin 
$90,533 investors, known as whales, have contributed to the latest market decline. In this article, we will delve into crucial topics concerning cryptocurrency trends.
Cryptocurrencies on the Rise
Dr. Andre Dragosh holds an optimistic view towards cryptocurrencies as Jerome Powell, the Federal Reserve Chair, indicated a significant shift in policy direction during his speech on Friday. In response to President Trump’s threats, coercion, and pressures, along with rising concerns about labor markets due to employment delays, Powell is moving towards an employment-focused policy era.
During the past four years, the Federal Reserve prioritized inflation, with employment metrics receiving scant attention, assessed primarily based on unemployment rates. Given that inflation figures are unlikely to approach the Fed’s 2% target and could further deviate due to tariffs, inflation will be de-emphasized in the coming period. The Fed is expected to focus on its dual mandate of employment, potentially lowering interest rates.
Dr. Dragosh expressed his views, stating:
“I am unsure who needs to hear this, but Powell should be content to leave his position next May because his successor will be compelled not to raise interest rates until inflation exceeds 5%…”
“I cannot comprehend why investors maintain such a pessimistic outlook towards BTC with deep negative real interest rates on the horizon…”
Some analysts attribute the recent downturn to distribution trends, pointing to prolonged whale sell-offs as a supporting factor. Ali Martinez highlighted that whales have sold $6 billion worth of crypto in the past two weeks alone.
Ethereum (ETH)
At the time of writing, Bitcoin has fallen back to the $110,000 mark, and despite significant justifications for an increase, its weakness continues to affect Ether. Stockmoney Lizards suggest that the downward trend might persist. For Lizards, the optimal buying level expecting a rise is at $4,190.
“Once again, the fair value gap (FVG) is closing. Investors experience fear at low prices and exuberance (i.e., buying) at high prices. I consider this a long-term opportunity. I plan to open a buying position at specified FVG points (spot, 1% risk) to calculate the average price. The target is $4,190.”
