When Bitcoin (BTC), the largest cryptocurrency by market capitalization and a broad indicator of crypto market action, broke below the $20,000 price level around mid-June, there was had widespread disappointment among crypto investors. So every time it now flirts with the $20,000 level – Bitcoin has been above that level for the past few days – expectations are rising, but does that indicate anything?
“This time, crypto markets were in the green when US CPI (consumer price index) data released on July 14 put inflation at 9.1%, a 40-year high. People are immediately expecting a Federal Reserve rate hike to get inflation under control and there will be trading with a focus on selling,” said Vikram Subburaj, CEO and co-founder of Giottos, a cryptocurrency exchange. .
Will Bitcoin fall further?
Some crypto experts believe that in a bear market, such relief rallies are common and not a long-term indicator of where the markets are headed.
“The reality is that we are in a bear market and these small pumps are not concrete. However, the market will present the illusion of growth and attract people to trade. It is common to have to show signs of swings to attract capital while sitting on the margin. But the consolidation is not over, and the market will correct it further. If Bitcoin breaks the 17K support, I see it going down to 14K or more, and the same ratio or more can be seen in other coins,” says Kumar Gaurav, founder and CEO of Cashaa, a crypto bank.
Sharat Chandra, vice president of research and analytics at EarthID, a blockchain platform, predicts that Bitcoin’s fall in the coming days cannot be ruled out, but adds that it is expected to reach all-time highs in the future. over the next 18 to 24 months. .
“Despite strong fundamentals, the crypto industry still faces many challenges, with liquidity and strong price swings remaining at the top of the list. Nevertheless, the recent recovery is undoubtedly a positive development that can help the ‘industry to get back on its feet,’ says Tushar Gandotra, Founder and CEO of FiEx, a Web3 ecosystem that provides a platform for crypto-to-crypto and fiat-to-crypto transactions.
The current correction phase is also seen as a purge phase. Utkarsh Sinha, managing director of Bexley Advisors, a boutique investment bank, said: “The recent bubble has been fueled by excessive foam and empty promises. Naturally, when the foam dissipates, some beer will remain at the bottom of the glass. The question is which of the many crypto adventures represents the value proposition that can continue to attract investment in the crisis cycle. Much like the dot-com bust, the projects that emerge from this cycle could be those that create fundamental value using blockchain,” he said.