In the spring, bitcoin peaked at $ 64.3 thousand, then dropped to $ 30 thousand. Will the digital coin be able to recover in the next three months and move to a new growth cycle, and how will this affect altcoins?
After the April maximum at $ 64.3 thousand, bitcoin went down – its rate fell to $ 30 thousand, the minimum since January 2021. The total cryptocurrency market capitalization peaked in May at $ 2.55 trillion, according to CoinGecko, it is $ 1.7 trillion, bitcoin is trading at $ 36.1 thousand. Experts gave a forecast of what will happen to the cryptocurrency in the next three months.
Continued growth
Such a decrease in quotations was necessary for the crypto market, says Mikhail Karkhalev, financial analyst at Currency.com crypto exchange. According to him, the correction cooled the market. The volume of unused stablecoins on exchanges and the scale of the withdrawal of bitcoins from exchanges indicates a gradual recovery and continued growth, the analyst explained.
In the current bull cycle, Ethereum has surpassed Bitcoin in terms of attractiveness, Mikhail Karkhalev is sure. The reason is in the development of industries such as DeFi and NFT, as projects based on Ethereum automatically raise the popularity of the blockchain on which they were developed, he argues. Ethereum also began to be used as a protective tool against a powerful collapse of the altcoin market, which may support its price in the future.
“It is faster to withdraw altcoins to Ethereum than to another coin, which increases the demand for the main altcoin in terms of capitalization, but reduces the demand for DeFi and NFT. In part, this is why many new coins sank by 60-80%, and Ethereum – only by 50%, “the analyst explained.
The dynamics of the Ethereum exchange rate may be positively affected by the upcoming London update, which is scheduled for release in July, but one should not expect a significant impact from this update, noted Nikita Soshnikov, director of the Alfacash cryptocurrency exchange service.
The London update will completely change the way fees are calculated. A portion of the commissions that miners are currently receiving as rewards will be burned to reduce the number of coins in circulation. This method is used to combat inflation and to increase the value of cryptocurrencies.
Capitalization recovery
In the summer, the crypto market may begin to recover its capitalization, which will increase the price of bitcoin to $ 50-52 thousand, and Ethereum to $ 3.6 thousand, leading analyst at 8848 Invest Viktor Pershikov predicted. According to him, the summer period is usually characterized by low volatility, so there should not be any sharp movements in the market.
In the coming months, one should not expect updates to historical highs, although the bitcoin rate will change in a small range with a lower border at $ 30,000, the analyst noted. Viktor Pershikov expects a faster recovery from Ethereum than from the main cryptocurrency, as altcoin is actively developing in terms of technology and remains the leader in the platform token sector, while Bitcoin is under pressure from fundamental circumstances, including the risks of new negative political and economic statements.
Other altcoins will also be in demand, as the DeFi sector tokens have fallen excessively, added Viktor Pershikov. In his opinion, this makes them interesting to buy.
In a narrow range
The most realistic scenario in the current conditions is the movement of quotations in a narrow range, the director of the cryptocurrency exchange service Alfacash predicted. According to him, now there are no prerequisites for the return of bitcoin to the record levels reached this year, but there are also no preconditions for the coin to fall below $ 30 thousand, since there is no flight of institutional capital.
Large investors who entered the crypto market over the past year do not sell digital assets, but, on the contrary, increase their investments in them, the expert says. In his opinion, this indicates an optimistic view of institutional investors on the prospects for the development of the cryptocurrency market. Until the fall, serious movements are unlikely to occur, bitcoin will not fall below $ 30 thousand, and will not rise in price above $ 45 thousand, Nikita Soshnikov is sure. He predicts that the coin will fluctuate in the range of $ 32-38.5 thousand.
Earlier, large investors took advantage of the drop in bitcoin quotes to $ 30 thousand, which occurred on May 19. During the collapse of the cryptocurrency market, “whales” bought 77 thousand bitcoins for $ 3 billion. In just a day, more than 175 thousand bitcoins for $ 7 billion were withdrawn from cryptocurrency exchanges, which became the largest outflow of digital coins over the past year.
