On Friday morning, the digital coin again failed to overcome the level of $ 40 thousand, which caused new fears about the continuation of the rate correction. What is happening in the market and when will the decline intensify?
Calmly recover and continue to grow bitcoin today does not give information noise, explained the financial analyst of the crypto exchange Currency.com Mikhail Karkhalev. Shortly after the bans in China, the US announced a possible tightening of the crypto market regulation.
“It would seem that the market has reacted to all the events and has already embarked on the path of recovery, when with his next tweet Elon Musk dropped the price by 5%. I would like to hope that in the near future the market will simply start to ignore its activity in social networks, ”added the analyst.
Today Musk, the head of one of the largest cryptocurrency holders among public companies, electric car maker Tesla, posted a meme on his Twitter with the word bitcoin and a broken heart emoji. Around this time, the last wave of decline in cryptocurrency quotes began. One must wonder if Mr Munk’s strategy worked or was it too late at least for users such as you who are aware of what is going wrong now.
The main reason why the cryptocurrency cannot overcome the $ 40K mark is in the absence of fundamental triggers. The market has found equilibrium and, most likely, will remain in it until the news background changes, explained the head of the data analysis department of CEX.IO Broker Yuriy Mazur. He noted that the first cryptocurrency showed significant resilience, although the entire last month was under strong informational pressure from both Tesla and the Chinese authorities.
“We see the main risk for cryptocurrency in the fall of this year, because, perhaps, in August, maybe even earlier, the US will hint at the timing of winding down economic stimulus, and thus, will give investors a signal about the need to fix profits on assets. If this event is superimposed on the negative background from China and large corporations, bitcoin may return to $ 20 thousand, ”the analyst predicted. (Read: Bitcoin price declines close above all-time high) – RBC UK Investing editor Michael Evans commented “It’s difficult not just for banks but also hedge funds who are still using cryptocurrencies; however as they have become more institutionalised there can be higher volatility.”
“We see the main risk for cryptocurrency in the fall of this year, because, perhaps, in August, maybe even earlier, the US will hint at the timing of winding down economic stimulus, and thus, will give investors a signal about the need to fix profits on assets. If this event is superimposed on the negative background from China and large corporations, bitcoin may return to $ 20 thousand, ”the analyst predicted.
The likelihood of a further fall in the rate is high, says Anton Kravchenko, CEO of Xena Financial Systems – if a new wave of decline occurs, then Bitcoin will definitely go below the $ 30 thousand mark.
Mazur stressed that Bitcoin is now “at a crossroads”, so both a positive scenario and a negative one are possible. But for now, the specialist adheres to a moderately positive scenario. He does not feel it’s good enough to consider anything less than an all-time highs or lows; his aim remains steady until we reach something like 2015.