On Friday, the price of BTC fell to its lowest level in a week – 35 thousand dollars, a decrease in value was 8.2%.
In May alone, Bitcoin fell by almost 40%. As noted by Reuters, if the trend continues, then this month will be the worst month for Bitcoin since September 2011.
BTC failed to gain a foothold above $ 40,000, but so far it has managed to hold above its support at $ 30,000. The present value of the asset is $ 37,000.
Many traders admit that the price is currently in a limited range, so they may hesitate to open a position with great confidence.
In the event that Bitcoin is unable to defend the support level, its next stop will be $ 20,000. The virtual currency may end 2021 with losses, which will lead to the onset of a tougher and longer crypto winter than in 2018.
Such forecasts echo the statements of the well-known participant in the financial market – Scott Meinerd from Guggenheim Partners. A fund representative warns of an outflow of funds from the bitcoin market and possible instability in the coming days.
The first victims are already there. One of the most active supporters and investors in the industry, the Grayscale fund, has lost $ 2.1 billion in cryptocurrency in the last 24 hours alone.
Reasons for the fall of the crypto market
The constant stream of bad news caused Bitcoin to plummet.
Observers cite Tesla’s refusal to accept BTC as the primary reason for the fall.
Another reason for the garden is the steps taken by the Chinese government to liquidate the cryptocurrency industry in the country. The latest fall is associated with criticism of BTC from the Bank of Japan, which previously showed a more loyal attitude.
The Bitcoin crash has spread to other cryptocurrencies as well. Binance coins, XRP and Polkadot have suffered huge losses this month.
Other cryptocurrencies, most notably Ethereum – the second largest after Bitcoin and the basis for many popular non-fungible token (NFT) transactions – held up better. Ethereum fell by only 6%. Dogecoin, which Musk has tweeted about several times, dropped slightly in May.
Bitcoin is notoriously volatile. However, despite strong falls this month, BTC is still 24% above its early 2021 level and 270% more than last year.
BTC price will rise by the beginning of autumn?
Experts are confident that the current BTC price range of 35-40 thousand is quite stable. This is confirmed by the fact that the price very quickly returned to the current values after the recent collapse of 50%. Assessing the previous sharp crashes, investors don’t expect a quick recovery in value to historical highs. To get out of the current range, new bright projects are needed that can push the entire market up. Signs of closer integration of cryptocurrencies into the global payments and financial services market will also be a catalyst for growth.
However, experts point out that the recovery of the Bitcoin price will certainly occur. Until the end of the summer, the cryptocurrency will continue to gain positions. This means that in the next three months there will be a gradual recovery. And by the beginning of autumn we will be able to see the figure above $ 50,000.
In addition, some experts believe that the price of $ 100 thousand is also quite real. Provided that large investment funds buy coins at the bottom, that is, in the range of $ 35,000 – $ 40,000.