On June 9, Bitcoin fell to a two-week low. According to reports, the United States recovered the ransom paid by the Colonial Pipeline Company to the hackers, causing Bitcoin to fall. In this context, many well-known institutional analysts lend their voices on Bitcoin’s future trends and prospects.
Antoni Trenchev, managing partner and co-founder of Nexo, a London-based cryptocurrency bank, said: Bitcoin’s plummeting is due to cumbersome and lengthy regulatory issues that have suppressed the price of Bitcoin. Fundamentally speaking, reasonable supervision is beneficial to the development of the industry, but for short-term investors, it is best to look elsewhere.
Bloomberg strategist Mike McGlone revealed that the decline of Bitcoin on Tuesday may be “related to the public’s concern that the federal government will snatch Bitcoin”.
It can be seen from the trading index chart that in the most recent sell-off, the currency fell to the level of $30,000. The data shows that the currency seems to be maintaining the $30,000 level. If the price of Bitcoin falls below $30,000, it may trigger a new wave of selling.
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Bitcoin price drop is nothing new
Michael Purves, CEO of Tallbacken Capital Advisors LLC, analyzed the decline of Bitcoin. If Bitcoin continues to fall, it may be thrown out at the level of $30,000 to $31,000. If it falls too low, it will rebound across board and then fall back to the $30,000 level again. He said in a report: “For assets (or stocks), this kind of “round trip phenomenon” is not uncommon, and tokens have experienced similar situations after the 2017 rebound”.
Ipek OzkarDeskaya, a senior analyst at Credit Suisse Bank, claims that the basic price pivot is around $30,000. According to the analyst, a drop below this price may cause cryptocurrency trading to stagnate in the short term. We will most likely see a situation of rapid sell-off.
Industry insiders said that a drop below $30,000 may lead to “another fall”. Other analysts predict that $29,000 will be the tipping point for Bitcoin trading. Some professionals claim that its price drop after rising is not strange. In most recent transactions, you can see a substantial plunge.
At the beginning of this year, Bitcoin rose by about 12%. However, since mid-April, the cryptocurrency began to plummet from a peak of nearly $65,000. The rapid fall of Bitcoin has seen intense sell-off which is not helping the situation.
Reminder: Cryptocurrency investment is risky, and you need to be cautious when entering the market. Digital currency investment has greater risks and unpredictability. This article does not constitute any form of investment encouragement and/or advice.