Experts shared their opinion on the prospects of bitcoin and told when to expect the strengthening of its rate
On May 26, the cryptocurrency index “Fear and Greed” fell to the mark of 12 points, which indicates an extreme level of fear in the market. Back on May 7, the indicator was significantly higher, at the level of 23 points. The next day, it dropped to 18, and since May 9, it has ranged from 8 to 14 points. The last time the figure dropped to 8 points was on March 28, 2020, when financial markets fell due to the risks of the COVID-19 pandemic.
On May 8, the collapse of the UST stablecoin, supported by Terra Blockchain, began. The cryptocurrency lost its peg to the US dollar after a one-time token sale worth about $ 300 million.
As a result, in early May, bitcoin, ether and many other cryptocurrencies updated local lows. The first cryptocurrency dropped to $ 26.7 thousand, and Ethereum to $ 1.8 thousand.
“The situation in the cryptocurrency market is ambiguous. Bitcoin has a close connection with the US stock market, which has fallen for seven weeks in a row. As soon as the active sale of shares begins, market participants immediately sell cryptocurrency, “said BitRiver financial analyst Vladislav Antonov.
According to Antonov, buyers fail to reach a corrective movement to the level of $ 35 thousand per bitcoin. The expert explained that if the level of $ 28 thousand does not stand, then the sellers will open the road to the zone of $ 20-23 thousand per bitcoin, in this case, the crypto winter will drag on until the fourth quarter of 2022.
With regard to the medium-term prospects, expectations are not so rosy, agreed Senior Analyst of the BestChange.ru Nikita Zuborev. In his opinion, the continuation of the corrective movement is most likely: in the absence of shocks in the market, the rates of the main cryptocurrencies may decrease in the coming months by another 40% of the current level.
“The expected trend reversal will tentatively come no earlier than mid-2023. The historical perspective shows that the market cycles are about 4 years (every 2 years there is a change in the global trend), so even in the conditions of a decrease in the value of assets, there is reason to believe that the value will recover and even grow in the next 2-3 years,” Zuborev concluded.
The fact that it is possible to expect the strengthening of the bitcoin rate by 2023, said the co-founder of BitCluster Sergey Arestov. He suggested that a new cryptocurrency price high is expected by another halving in 2024.
Legislative regulation of the sector attracts large Russian investors, who now have the opportunity to enter the market and get a good payback at the next peak, the expert believes. According to him, the corrections cool and heal the market.
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