• Coinjournal’s Dan Ashmore says numerous factors, including inflation and rate hikes, have affected the prices of most cryptocurrencies.

• He told CNBC that Bitcoin’s recovery would depend on numerous macro events affecting the market.

• Bitcoin and the broader crypto market have lost more than 65% of their value since the all-time high of November 2021.

Bitcoin’s recovery will not happen overnight

Dan Ashmore, a cryptocurrency analyst at Coinjournal, told CNBC in a recent interview that the price recovery of cryptocurrencies will not happen overnight. When commenting about the price collapse last year, Ashmore said;

“Entering 2022, we were at the tail-end of one of the longest and most explosive Bull Runs in recent memory. And then the world is gripped by this inflation crisis post-pandemic. We also experienced one of the swiftest rate hike cycles in recent memories. That sucked the liquidity out of all these risky assets. It is not overly surprising that we have seen this massive pullback.”

The macro climate will play a role in market recovery 

At press time, the price of Bitcoin stands at $21,163, down by more than 60% from the all-time high. While commenting on the possibility of price recovery, Ashmore said the macro climate would play a huge role in that regard. He said;

“In the last month or so, we have seen slightly more positive readings. It still has a long way to go, but it is brighter than it looked a month or two ago. We still have a long way to go before we get back to that $69,000 all-time high. This is not going to be an overnight process.”

He added that the rise depends on a whole range of variables in the macro climate going our way. Furthermore, the avoidance of incidents such as the LUNA, FTX, and Celsius crashes could help boost the market in the long term.

Cardano’s founder Charles Hoskinson has an active social media presence through which he maintains engagement with the community. His latest podcast particularly captured the attention of many because it was addressed to Elon Musk on how to create a decentralized Twitter.

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Here’s AMBCrypto’s price prediction for Cardano [ADA] 2022-2023

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Hoskinson’s proposal urged the Tesla CEO to consider a decentralized overhaul of the decentralized platform through Cardano. This was in light of the increasing concerns regarding censorship. Meanwhile, Elon has been trying to create a better monetization strategy for Twitter.

Video to Elon: How to Build Decentralized Twitter Using Doge and Cardano for Profit and Pleasure https://t.co/g9p1MnSqPZ

— Charles Hoskinson (@IOHK_Charles) November 6, 2022

Hoskinson’s proposal featured ideas on how to monetize the platform using prediction markets and economic agency. He also suggested turning tweets into NFTs. The Cardano CEO further recommended using cryptocurrencies to monetize Twitter.

Potential implications on Cardano and ADA

History has proved that Elon Musk tends to embrace ideas that are often considered wild or beyond the normal scope. It would not be surprising to see the Tesla CEO embrace the Cardano CEO’s idea. A partnership between Twitter and Cardano could also prove to be monumental.

More importantly, it would provide a base for more robust utility for ADA as the potential transaction medium. Such kind of adoption would likely trigger a massive demand wave for ADA. However, the market so far didn’t respond aggressively to Hoskinson’s proposal considering ADA’s price action.

ADA traded at $0.40 as of 7 November after a 7% retracement from its latest local peak on 5 November. However, ADA’s price at press time, traded at $0.38 after suffering a price correction of 5.4% in the last 24 hours.

However, contrary to the above-mentioned information, ADA did manage to pull off a 30% upside in the last three weeks. But, its latest upside seems to have encountered resistance near the $0.43 price level. This is the same level that the price retraced from in the last three to four days.

ADA’s slight downside also reflected a slight drop in Cardano’s development activity. A sharp drop in its velocity was also observed in the last three days, indicating that the bullish momentum was losing steam.

Numerous other metrics also confirmed that the recent trend was witnessing a slowdown. For example, Cardano’s daily active addresseses registered an overall decline in the last few days. The transaction volume metric achieved a similar observation but it registered its largest four-week spike between 6 and 7 November.

The spike in transaction volume might be an indicator that bullish demand was recovering. This was considering the price managed to achieve a sizable uptick in the last 24 hours. Thus, overcoming the bearish momentum it gathered during the weekend.

A positive response from Elon Musk with regards to Hoskinson’s proposal would be a strong forward move for Cardano. It would also likely trigger another bull run for ADA.