Yesterday we discussed bitcoin holding above $20,000, and today the first cryptocurrency has plunged to $19,600 – $19,300. According to CoinMarketCap, the daily decline is 4%. We have gathered expert opinions on how the dynamics in the digital asset market can develop.
📊Glassnode: the bottom is near
According to a new report from Glassnode, the bearish trend in the cryptocurrency market has already reached its final stage, as evidenced by signs of deep capitulation. Nevertheless, experts believe the assets have not yet reached the bottom price.
Glassnode analysts also note that the current decline is largely due to massive asset sales by long-term investors included. At the same time, those who bought bitcoin at a high price during the bullish trend of 2020-2021 are the primary “panic-selling” group. As for 2017-2020 holders, they tend to hold onto their assets. Another critical factor is the “redistribution of assets” — crypto is being transferred from speculators to long-term investors, which signals that the bottom is approaching.
📊Bloomberg poll: bitcoin would rather fall than rise
According to a new Bloomberg survey, 60% of the 950 investors surveyed believe that in the short term, Bitcoin is more likely to fall to $10,000 than to rise to $30,000. The remaining 40% adhere to the second scenario. Bloomberg also notes that institutional investors are showing more faith in cryptocurrencies.
As for choosing among cryptocurrencies, most believe in the long-term growth of Bitcoin and Ethereum. At the same time, only 9% expressed their willingness to invest in NFTs.
📊Rockefeller International CEO: growth can be expected only after deleveraging
Ruchir Sharma, director of management company Rockefeller International, said that the key criterion for BTC growth is getting rid of “excessive leverage.”
According to Ruchira, the bitcoin industry is still dominated by speculative interest. He also expects negative revaluation to continue over the next six months as financial markets have not yet bottomed out. For example, the expert mentioned stock markets: the average decline during a bear cycle is 35%, while the current S&P 500 index drop only amounts to 20%.
Most analysts agree that the bearish trend is already ending, but cryptocurrencies still need to reach the price bottom. Currently, there is a redistribution of assets from speculators to long-term investors and market deleveraging. In addition, experts predict increased regulation shortly after the collapse of the cryptocurrency giants. All this will ensure the long-term growth of digital assets and make the market more efficient.
🔹As always, we remind you that no one can predict with 100% certainty how the price will move. The experts’ opinions often differ, and therefore you need to rely solely on your skills and knowledge.
What will the bottom price for bitcoin in this bearish cycle be? 🤔