When Bitcoin (BTC), the largest cryptocurrency by market value and a broad indicator of where the cryptocurrency market is heading, fell below the $ 20,000 price level around mid-June, there was great disappointment among crypto investors. So every time it now flirts with the $ 20,000 level – Bitcoin has been above that level in recent days – expectations go up, but does it indicate anything?
“This time, the crypto markets were in the green when the US CPI (Consumer Price Index) data released on July 14 set inflation at 9.1 percent, a 40-year high. People immediately predict a rise in interest rates from the Federal Reserve to tame inflation, and it will be trading with an emphasis on sales, says Vikram Subburaj, CEO and co-founder of Giottus, a cryptocurrency exchange.
Will Bitcoin fall further?
Some crypto experts believe that in a bearish market, such emergency rallies are common and are not a long-term indicator of where the markets are heading.
“The reality is that we are in a bear market and these small pumps are not concrete. However, the market will present an illusion of growth and entice people to trade. It is standard for the need to show fluctuating signs to attract capital while sitting “But the consolidation is not complete and the market will correct it further. If Bitcoin breaks the support of 17K, I see that it goes down to 14K or more, and the same or more conditions can be seen in other coins,” says Kumar Gaurav, founder and CEO of Cashaa, a crypto bank.
Sharat Chandra, vice president of research and analysis of EarthID, a blockchain platform, predicts that the fall of Bitcoin in the coming days can not be ruled out, but he adds that it is expected to reach all-time highs in the next 18-24 months.
“Despite the strong ground conditions, the crypto industry is still struggling with many challenges, with liquidity and high price fluctuations remaining at the top of the list. Nevertheless, the recent upswing is definitely a positive development that could help the industry get back on its feet,” says Tushar. Gandotra, Founder and CEO, FiEx, a Web3 ecosystem that provides a platform for crypto-to-crypto and fiat-to-crypto transactions.
The current correction phase is also seen as a cleaning phase. Utkarsh Sinha, CEO of Bexley Advisors, a boutique investment banking firm, said: “The recent bubble was driven by excessive foam and empty promises. Of course, when the foam clears, there will be some beer left in the bottom of the glass. The question is which of “The many cryptocurrencies that represent the value proposition that can continue to attract investment in the bust cycle. Just like the dot-com bust, projects that emerge from this cycle can be the ones that create core value using blockchain,” he said.
