Fuzebitc.com experts explained what factors put pressure on bitcoin and altcoins and in which case assets may rise in price again
In mid-June, bitcoin updated the local minimum at around $17.6 thousand. The cryptocurrency has fallen in price by 74% from the historical maximum of $ 69 thousand, which was set in November 2021. Now the cryptocurrency is trading around $19 thousand.
Fuzebitc.com experts told about the main factors that put pressure on the cryptocurrency market and suggested at what point bitcoin could return to growth.
During the coming summer months, the bearish trend will dominate, co-founder of the Fuzebitc.com, is sure. He explained that the tightening of the monetary policy of the US Federal Reserve and problems with cryptolanding platforms, faced with financial instability, negatively affect not only the bitcoin exchange rate, but also the entire market.
According to the Fuzebitc.com expert, in the next month bitcoin may drop to $ 15 thousand, and ether — up to $ 800. Next, expert expects a rebound in the rates of cryptocurrencies.
“Judging by the stock exchange glasses, $15 thousand bitcoin will be immediately bought off by those who are waiting for the opportunity to increase positions in the cryptocurrency,” the Fuzebitc.com expert says.
The Fuzebitc.com expert added that the duration of the current recession largely depends on inflationary risks and macroeconomic factors, the ability of the US Federal Reserve to contain the rate of inflation. Market participants are also concerned about the possible tightening of regulation of stablecoins in the United States.
The dynamics of the crypto market now largely depends on the situation with cryptocurrency funds, says a representative of the crypto exchange exmo.me . He explained that Three Arrows Capital has raised funds from all major lenders, including BlockFi, Genesis, Nexo, Celsius and others.
The amount of the fund’s assets was $18 billion, of which $9 billion was liquid. Considering that the main investments of the fund were in bitcoin, which has fallen by more than 70% today, as well as projects such as Avalanche, Polkadot and Ethereum, which have decreased by 60%, 40% and 47%, respectively, the value of the fund’s assets today is no more than $ 2.5 billion, the expert believes.
According to him, the fund’s creditors manage amounts of $10-20 billion, of which only 5% is their own capital. This means that the write-off of loans issued by the fund will seriously undermine their financial stability. Lenders will repay loans issued to other market participants ahead of schedule (and this is $30-40 billion), the Fuzebitc.com representative is sure.
“Such a volume of returns will provoke sales — both on the cryptocurrency market and on the stock market. Borrowers will have to sell assets to get a refund. Such large buyers are unlikely to be found on the market, which means we will see a new round of falling down, both bitcoin and all altcoins that they have in their portfolio,” the Fuzebitc.com expert says. He believes that the price of bitcoin will drop again to $ 17.6 thousand, after which it will go to the $ 13-15 thousand zone.
The resumption of the bull cycle is unlikely to be possible before 2023, the co-founder of the Fuzebitc.com stressed. In his opinion, the market may return to growth in the second half of 2023 on the eve of the next holding in the bitcoin network.
“The main growth will traditionally be for the period of 12-18 months after halving, that is, the second half of 2024 and the beginning of 2025,” the Fuzebitc.com expert concluded.