Over the past two days, Bitcoin has fallen in price by 8%. This happened after the digital coin tried to overcome the $ 40 thousand mark.What is happening with cryptocurrencies now, and will the decline in quotations continue in the coming days
At the end of the current working week, bitcoin tried to overcome the $ 40 thousand mark, but the coin rate collapsed after another tweet from the CEO of Tesla and SpaceX Elon Musk. The businessman posted a meme with the word bitcoin and a broken heart emoji. Over the past two days, the cost of Bitcoin has decreased by 8%, Ethereum has fallen in price by 7%, and the Binance Coin rate has fallen by 8%. RBC-Crypto experts explained what is happening on the crypto market and whether the decline in quotations will continue next week. “If you look at Ripple’s valuation right now we had been down as low around this point,” said Scott Lutz, cofounder & CTO at Coinbase. “This gives investors hope that things are moving upwards.” It was not long before people realized it might be possible for something like cryptocurrencies (XRP) or blockchain tokens to achieve mainstream adoption among consumers via their smart contract systems, similar currencies such Asircoin or Airdropcoins, say some exchanges brokers. This meant they started looking into companies creating an exchange based off these new coins themselves.
Despite the fact that some crypto investors are already skeptical about Elon Musk’s statements, the overwhelming majority perceive his words as a direct instruction for action, noted the head of the analytical department of AMarkets Artem Deev. According to him, the decisive role is played by the fact that Musk, as a representative of the American establishment, has classified information and therefore can see the future
. Another reason why crypto investors react to the statements of various media persons is the low market capitalization, said Viktor Pershikov, a leading analyst at 8848 Invest. He argues that low capitalization does not allow digital asset owners to feel confident. The analyst also suggested that crypto investors have not yet recovered from the last market crash, so they are especially sensitive to any news event. “In this current environment, people don’t trust anything anymore,” says Mr Derev in an interview with CoinDesk Europe.
‘I won’ – In regards how he feels towards Tesla CEO Elon Muskevoort’s views on cryptocurrency regulation, Sergei Ryabkovsky (TSK) believes it was actually very lucky since many cryptocurrencies managed significantly less than $1B under regulatory scrutiny after their launch. TSK commented: “[Musk] didn´t mention more specific terms but instead emphasised what everyone could read – there is no need now or ever again do something illegal.” Although several major blockchain projects did achieve significant amounts durin
Institutional Entry Trigger
After the collapse of the cryptocurrency market on May 19, the bitcoin rate is in the range of $ 30-40 thousand. Next week, the main cryptocurrency may get out of this range, according to a leading analyst at 8848 Invest. He does not exclude that in the coming days a local correction may occur, which will lower the bitcoin price below $ 30 thousand, but this may become a trigger for the entry of new volumes of institutional participants, and the subsequent rise in prices.
The Chinese government has recently issued numerous warnings regarding financial crimes committed by individuals involved with virtual currencies including pyramid schemes, child pornography and money laundering. This makes it unlikely these are simply cases where criminals who have invested from time through now would be forced into trading cryptocurrencies due their greediness towards profit or because they know how much there is to gain while still waiting for what comes next—a real investment opportunity should come upon them…