Bitcoin Falls Below $58,000: What Are Analysts Saying?
Bitcoin analysts expect volatility in cryptocurrency markets to continue throughout the next week.
According to CoinGecko data, Bitcoin lost 4.2% in value in one day and fell to $ 57,700. Analysts think that Bitcoin, which has fallen to its lowest level since May, is affected by the Fed's policies.
“A psychological level”
“Spending below the resistance level at $60,000 is important as this level is a psychological barrier for many investors,” said BTC Markets analyst Rachael Lucas.
Lucas commented, “If Bitcoin continues to remain below this level, we may see more volatility in the short term.”
The price of Bitcoin has increased recently due to the collapse of the bankrupt cryptocurrency exchange Mt. Gox will distribute approximately 142,000 BTC to its creditors. According to Lucas, this will put “significant selling pressure” on Bitcoin.
Pay attention to Fed policies
Fed Chairman Jerome Powell said that they have made good progress in controlling inflation, but they are still not at their target point.
Many analysts expected the Fed to cut interest rates twice this year. However, the Fed has signaled that it may cut interest rates only once this year.
“This created an anti-risk sentiment among investors,” Lucas said. Lucas said, “The market is Mt. “I expect there to be volatility in Bitcoin next week as Gox digests its distributions and reacts to more general economic signals,” he commented.
The analyst stated that Bitcoin could move upwards again if the liquidity in the market remains at strong levels.
Bit.com CMO Toya Zhang said, “Although many analyzes show that there will be a significant increase in July, we think that it is difficult for there to be a significant increase unless interest rate cuts benefit due to the lack of liquidity in the market.”