Over the past week, the value of bitcoin and altcoins has declined amid a negative news agenda. What to expect from the cryptocurrency market next and why quotes may continue to fall?
Over the past seven days, the value of bitcoin has decreased by 16%. According to CoinGecko, the main cryptocurrency is trading at $ 49 thousand. Altcoins have also dropped. For example, Ethereum fell 3% in a week, and Binance Coin fell 10%. experts explained what is happening with the crypto market and what to expect from the quotes in the coming days.
The fall may continue
The bitcoin rate fell below $ 50 thousand amid several negative news. On May 13, Tesla stopped selling electric vehicles in bitcoins due to the non-environmentally friendly way of mining them.
The head of the automaker Elon Musk said on Twitter that Tesla cannot afford to harm the environment, so it will not accept cryptocurrency as payment until it starts mining with renewable energy sources.
Also on this day, it became known that the Department of Justice and the Internal Revenue Service of the United States began an investigation in relation to the largest crypto-exchange in the world, Binance .
Previously, the site was already involved in an investigation by the CFTC. The regulator studied the work of the company for the admission of US residents to trade in crypto derivatives in the absence of an appropriate license.
Bitcoin is not an asset that can have a non-combustible amount or a certain drop threshold, says Artem Deev, head of the analytical department at AMarkets.
According to him, one negative event or several at once can lead to a chain reaction for the start of sales and then the coin can fall up to $ 30 thousand. Such a drop can cause a reaction from investors who understand that the states are starting a war against the crypto market, the analyst explained.
“The statements of certain persons are unlikely to lead to this, it is more likely that the decisions of states in the legislative sphere can make it,” noted Artem Deev.
Bitcoin quotes may drop to $ 30-35 thousand, and at this level, large players will begin to make large purchases of the coin, says Andrey Podolyan, CEO of the crypto exchange cryptorg.exchange.
Altcoins trending
Ethereum will return to growth, as they are interesting to investors due to their prospects, the head of the analytical department at AMarkets is sure.
In his opinion, the market is looking for investment opportunities and now altcoins have become more interesting than bitcoin, which has reduced the rate of growth in value.
“This is not yet crypto winter and not a large-scale fall of the entire market, but a short-term small correction,” the analyst added.
Altcoins feel a little more confident than bitcoin, as evidenced by the steadily declining level of dominance, says Nikita Zuborev, senior analyst at Bestchange.ru. According to him, with rare exceptions, most of the popular altcoins are expecting a stable summer.
