Valkyrie analyst expects a further decline in the BTC rate

This year, the BTC rate fell by more than 37%, falling below $ 30,000, but one cryptanalyst sees the potential for an even greater decline.

The head of the research department of the investment manager of Valkyrie Josh Olshevich noted that in order to get the opportunity for the bitcoin rate to gain a foothold at the bottom, volatility should decrease:

“You can look at things like the 200-week moving average, which is around $22,000. You can look at the realized price, which is the average rate of coins moved in the network and is about $ 23,800. The movement to the bottom will take at least the entire third quarter, and, possibly, the fourth. “

According to Olszewicz, some other factors, such as the increase in interest rates by the US Federal Reserve, also play a role in the results of the BTC market. In addition, institutional investors can stimulate the decline, since the average volume of transfers in the network is tens of thousands of BTC:

“Much of the volume is certainly accounted for by institutional-sized flows.”

However, according to Olszewicz, the movement of the market is still more dependent on retail traders than on institutional investors. Newcomers to the world of cryptocurrency investing are exploring the possibilities of a bear market:

“The fall and growth have been observed before, and since many people are learning about bitcoin for the first time, the cycle may repeat itself. Since 2018, the average number of wallets with a BTC balance has increased from over 27 million to 41 million today. We see that many people not only stay in the crypto industry, but also try to find out more about what is happening in this area. “