Experts explained why in the next few months there is still a danger of another collapse of the first cryptocurrency (bitcoin) and to what level the quotes may fall
On July 21, the head of the FTX cryptocurrency derivatives exchange, Sam Bankman Fried , predicted that the bitcoin rate would not be able to fall below $ 10 thousand.
According to Bankman Fried, many buyers will become more active at this level, who will start buying cryptocurrency and prevent quotes from falling below.
Scott Minerd, investment director of Guggenheim Partners, also gave a forecast for a decline in bitcoin to $ 15 thousand in an interview with Bloomberg .
In his opinion, the first cryptocurrency (bitcoin) will decline to this level based on the statistics of past corrections, during which the asset lost about 80% of its value.
"There's still more air to come out of this."
Guggenheim's Scott Minerd says Bitcoin could drop to $15,000 https://t.co/JbGop61Sdg pic.twitter.com/JtpANgtC3H
— Bloomberg TV (@BloombergTV) July 21, 2021
experts explained why analysts started talking about a further decline in bitcoin, and how likely their predictions are.
Short-term forecast
The assumptions of Bankman Fried and Minerd should be considered as a short-term forecast for the next two months, during which the price of bitcoin can really drop below $ 20,000 and possibly even up to $ 15,000, explained Nikita Soshnikov, director of the Alfacash cryptocurrency exchange service.
According to him, the decline will end in a few months, as Chinese miners will complete the relocation of their equipment and connect it to the network.
“The possible fall will be short-term – and here I agree with the head of FTX that there are too many buy orders placed at the level of $ 10-15 thousand, which will not allow the coin to go lower and even gain a foothold at this minimum,” the analyst noted.
This will be a “minute breakout”, when the rate falls, orders are immediately executed, and the price is bought off and returns above the $ 15,000 mark, Soshnikov said.
Important level
Andrey Podolyan, CEO of Cryptorg crypto exchange, also agreed with the FTX head’s forecast.
In his opinion, large players will start buying bitcoin in “gigantic volumes” even when the price of the coin drops to $ 20,000. SpaceX Elon Musk, Twitter founder and head of Square Jack Dorsey, and ARK Investment founder Katie Wood.
On July 21, Bitcoin grew by almost 10% over the course of the day.
The value of the coin reached $ 32 thousand after the day earlier quotes fell to the level of $ 29.2 thousand for the first time since June 22.
“Many investors move more on expectations of the news than on the news itself. Now imagine that there are several top bullish news, ”Podolyan said.
After Elon Musk announced SpaceX’s investment in bitcoin on July 21 and confirmed the return of the cryptocurrency as a means of payment to Tesla, quotes at the moment reached $ 32.8 thousand (an increase of 12% per day).
According to the CEO of the Cryptorg crypto exchange, it is now important for the bulls to overcome the level of $ 36 thousand. While the quotes are below this level, “bears dominate the market,” Podolyan stressed.
