On the morning of June 8, the cost of Bitcoin dropped to $ 32.3 thousand. During the day, the main cryptocurrency fell by 9%. Thus, during trading on June 8, the price of Bitcoin was heading towards $ 30,000 – the lowest value since May 19. Previously, the currency was traded at this level only at the end of January. And its capitalization fell to $ 622 billion. This happened after the billionaire and former US President Donald Trump criticized the digital coin and called it a fraud. The businessman urged the US authorities to “very tightly” regulate the circulation of digital coins in the country. In addition, more than $ 140 million have been withdrawn from Bitcoin-based instruments over the past week, according to a report by CoinShares.
Popular trader Crypto Ed even predicts that Bitcoin’s price will soon fall below the $ 30,000 mark. He noted that a breakout is needed to avoid a new fall in prices for Bitcoin.
The likelihood of a decline to $ 30 thousand not excluded, as retail investors are slowly continuing to sell. Any small downside impulse can scare them, causing sales to intensify. However, at the same time, large investors continue to accumulate and accumulate positions, and this is a bullish signal.
One of the factors that can affect the rise or fall of Bitcoin may be the statistics on inflation in the United States, which will released on June 10. However, it is still premature to make any predictions here, since there are different versions of statistics, each of which has its own options for the further development of the situation.
Is the bullish trend coming back to the market?
According to analysts, it is too early to talk about a long-term correction, since from a technical point of view, to launch such a scenario, it is necessary for Bitcoin to fall below $ 30 thousand. The dynamics are similar to a price surge and a short-term reaction to information negative, experts say.
In their opinion, there are two possible scenarios for the development of events. In the first case, Bitcoin will fluctuate for some time in the range of $ 35-40 thousand, until a critical mass of buyers gathered. This will activate the bullish trend, analysts say. The second scenario assumes a drop in the Bitcoin rate to $ 20-25 thousand.
“At these levels, a rapid set of long positions may occur, which will push the quotes out and provoke the beginning of an upward trend”, experts predict.
It is incorrect to talk about panic among institutions, since investors, despite the withdrawal of funds from products based on Bitcoin, are simultaneously increasing investments in instruments based on altcoins, which has a positive effect on the crypto market. For example, software maker MicroStrategy continues to ramp up its investment in Bitcoin.
On June 7, MicroStrategy announced a $ 400 million bond issue maturing in 2028. The company plans to use the funds raised to buy Bitcoins. The software maker is now the largest cryptocurrency holder among public companies. MicroStrategy owns 92,000 Bitcoins worth $ 3 billion, according to Bitcoin Treasuries. At the moment, there is a high probability of updating a new all-time high for Bitcoin, experts say. In their opinion, the supercycle is not over yet, and the market is somewhere in the middle of the growth, which should stop closer to 2023.