Bitcoin was unable to make a fundamental change in the market, as trading continued in a narrow range around the $29,000 level, to close the leading digital currency last week’s trading, recording its ninth weekly loss.
Bitcoin was unable to make a fundamental change in the market, as trading continued in a narrow range around the $29,000 level, to close the leading digital currency last week's trading, recording its ninth consecutive weekly loss.
Bitcoin is exposed to nine consecutive weeks of declines
The past seven days have been full of sideways moves and slow declines, Bitcoin has been trading around $29,000 over the course of the week as the coin fails to hold the $30,000 level, experts believe that if the S&P 500 continues to fall it is expected to emerge as an excellent buying point. for bitcoin.
From the end of March to Sunday (May 29) decreased digital currency Leading at more than 35%, and its price has been hovering around the $30,000 mark for the past two weeks, most experts believe the currency will trade between the $29,000 and $31,000 ranges in the coming weeks, but economic data such as GDP and inflation in the United States could lead That changed.
BNick Morgan Stanley expects gains
JPMorgan strategists remain bullish on cryptocurrencies despite the European Central Bank (ECB) warning of increased risks to the crypto asset class.
The bank’s analysts said Wednesday (May 25) that the volatility of bitcoin relative to gold has decreased slightly, indicating that the “fair value” of the digital currency is $ 38,000, and also indicating that the digital assets have “significant value.” The currency is currently trading Around $29,800 implying a profit of 27% from the target price.
Bitcoin has fallen sharply over the past month due to threats of higher interest rates and deteriorating macroeconomic prospects amid fears of a recession in the United States, dampening demand for technology investments.
On the other hand, the collapse of the TerraUSD stablecoin algorithm also sent the crypto market down, causing other crypto assets to sell off, including trading and lending activity on Decentralized Financial Networks (DeFi).
One bank analyst says that despite the current weakness, cryptocurrency now looks more attractive as an alternative asset than real estate, which may not fully reflect the impact of higher interest rates, and believes that the current selling pressure may be exaggerated, especially with Bitcoin and Ethereum futures nearing The oversold zone, where traders flock to stablecoins and essentially switch away from cryptocurrencies.
Another positive trend is that venture capital (VC) funding is showing no signs of slowing down yet, as the $25 billion in venture capital funding entering the crypto space this year increased nearly $4 billion after the collapse of Terra.
He believes that venture capital funding could be the key to avoiding another “crypto winter” for the industry, the last crypto winter in late 2017 to late 2020, when the value of bitcoin collapsed by more than 80% and took 3 years to recover and rise to previous highs. .
Of course, the money flowing into a crypto project does not mean that it will be fully repaid to crypto holders, most of the cryptocurrency profits go to early adopters and founders of blockchain projects, many cryptocurrencies saw the biggest gains after listing on major exchanges and the collapse of the TerraUSD stablecoin and associated coin by LUNA.
There are also growing signs of concern from financial regulators, the latest wave of warnings from the European Central Bank, as the European Central Bank warned on Wednesday that crypto assets now represent less than 1% of the global financial system, but that's no small feat, though. The recent downturn, the market is still at a similar size to that triggered in 2007 during the 2008 global financial crisis.
The European Central Bank concluded: “If the volume of digital assets continues its current growth path, and financial institutions continue to have an increased appetite for digital assets, these assets may become an immediate threat to global financial stability.
European Central Bank President Christine Lagarde also warned of the risks of cryptocurrencies, saying that it was worthless, and called for stronger regulation to protect investors.
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