Bitcoin’s historic fall below $ 30,000; What do the experts say?
The price of Bitcoin fell below $ 30,000 this morning after almost 300 days; But what are the main reasons for this historic decline in the digital currency market, and what future do experts envision for prices?
To Report A few days after the Federal Reserve decided to raise bank interest rates faster and financial market investors feared a recession, the digital currency market and stocks both fell to record lows, and the bitcoin price fell to 290 days later. Fell below $ 30,000.
The $ 29,700 bitcoin floor, which has been recorded in the last 24 hours, is the lowest price of this digital currency in 2022 and the last 10 months. Bitcoin last experienced a price below $ 30,000 on July 20, 2021; When it started a new uptrend after falling to $ 29,300.
What do the experts say?
“Edward Moya, a financial market analyst at the Oanda Trading Institute, says:
The recent collapse of digital currencies is entirely due to the increasing sales pressure in the stock market of technology companies and has little to do with the digital currency space. The current downturn could push Bitcoin down to $ 28,500, and some long-term buyers may enter the scene after reaching that level. The positive and long-term fundamental factors associated with bitcoin remain strong; But going back to the previous price record level ($ 69,000) will take a long time. After the end of the bloodbath on Wall Street (US stock market) Bitcoin can begin a new period of stabilization. For now, however, many analysts are selling their assets for fear of falling prices (Panic-Selling).
Steven McClurg, Valkyrie’s senior investment director and co-founder, said:
If the US Federal Reserve continues to raise interest rates until June and July (June and July), the market is likely to decline during the summer. With the US midterm elections in November this year, I expect the US Federal Reserve to decide at its September meeting to stop raising or even lowering interest rates. This can happen [در پایان تابستان] Create a spark in the market and cause prices to return again.
“Jeff Dorman, director of investment at Arca, which invests in digital currencies, says:”
This fall has happened because the backwardness of buyers and their refusal to enter the market has reached its peak, and it remains to be seen what will bring them back to the market; Of course, if there is anything that can persuade them to return.
The US Federal Reserve decided to raise interest rates by 0.5 percent this month, and will likely do the same at next month’s meeting in June.
As you know, the collapse of bitcoin these days is just part of a massive downturn in financial markets around the world. All three key stock market indices have fallen. The S&P 500, one of them, fell 3.2 percent to 3.991. The Nasdaq and Dow Jones industrial average are down 4.5% and 2% at 11.623 and 32.245, respectively.
During this record low, the correlation between the price of Bitcoin and the Nasdaq stock index also reached its historical peak of 80%, which shows the high coordination of digital currencies and the stock market.