The $ 40K level seems unlikely to be broken again by the Bitcoin price anytime soon. The main cryptocurrency yesterday showed a local growth to almost $ 43,500 amid new comments from the head of the US Securities and Exchange Commission (SEC) Gary Gensler.
Now the head of the regulator is shifting the focus of his attention from complete control of the cryptoindustry to more global issues such as the prolonged fall in the share price of a large Chinese holding company Evergande Group. At the same time, well-known representatives of the digital assets industry reacted to the rebound. Let’s talk about what is happening in more detail.
Note that what is happening with the rates of Bitcoin and Ethereum has already been commented on by billionaire and entrepreneur Michael Novogratz. As he noted earlier , such crashes are normal given the recent strong growth in the digital asset market. At the same time, BTC and ETH should hold the level of 40 and 2.8 thousand dollars, respectively, for the market to remain in a bullish mood.
Given the collapse, the total cryptocurrency capitalization dropped below $ 2 trillion. The current figure for today is 1.95 trillion. Here is the all time market capitalization chart.
What will happen to Bitcoin
At the moment, BTC is trading in the region of 42 thousand dollars . Over the past week, the price of the cryptocurrency has dropped by almost 11 percent , and also experienced significant drawdowns the day before. In particular, Bitcoin dropped to $ 39.6 thousand, albeit for a few seconds.
A well-known crypto trader under the nickname Crypto Bullet said on Twitter that the current rebound in the price of Bitcoin still cannot be called bullish enough. Accordingly, the current power of the first cryptocurrency may not be enough for further market growth. Here is a quote from him.
I don’t have much joy about this. Sure, it’s good to see strength in buying pressure, but overall the market looks as if the decline in value will continue.
According to him, the return of the value of the cryptocurrency above the level of $ 46,500 will give more confidence to market players in further growth.
At the same time, the trader and analyst of the Decentrader platform under the pseudonym Filbfilb sets other goals. Here is his line.
Turning the $ 45k line into support would be a truly bullish event.
Analyst Philip Swift is also positive about the outlook for digital assets.
As a reminder, investors usually sell their bitcoins in the short term amid global macroeconomic uncertainty. However, serious problems that are arising all over the world right now are exactly what Bitcoin should protect us from.
As a reminder, BTC earned shortly after the start of the 2008 crisis. Experts believe that the anonymous Bitcoin developer Satoshi Nakamoto did this in response to global economic uncertainty.
In general, among the main reasons for the local rebound in Bitcoin are new comments by the head of the US Securities and Exchange Commission Gary Gensler in his recent interview with The Washington Post. Gensler focused specifically on the problems of the global economy, which is already good – at least this time he did not criticize cryptocurrencies .
Meanwhile, the collapse of Bitcoin itself brought losses to many trading participants. Over the past few days, the number of crypto wallets that can sell cryptocurrency for a profit right now has decreased from 82 to 70 percent . These data were published by representatives of the analytical company Glassnode.
Accordingly, the profit in the industry has become significantly lower, which in theory can frighten off newcomers and attract experienced market players who acquire assets exclusively “at a discount.”
We believe that now it is even more difficult to predict the future movement of the cryptocurrency market along with Bitcoin than usual. Yet the world has focused on the Chinese economy and its possible impact on other states. Be that as it may, BTC is still the national currency of El Salvador and attracts the attention of professional investors. I would like to believe that the positive scenario is still relevant.