As Bitcoin’s (BTC) price slid below the $60K mark, a cross-section of investors expressed a keen belief in the end of the bull market, but others stoically accepted the correction as a small blip in the grand scheme of things.
The largest cryptocurrency hit its lowest ebb since February after trading at $59,000 at the start of May, dragging the rest of the ecosystem underwater. As prices fell, several traders resigned themselves to the fate that the asset could slip to the $50K mark, sparking a dry spell for the asset.
The pessimists point to a tepid price performance in April, which saw the asset lose 16% over the course of the month. Presently, BTC trades at 20% less than its famous all-time high of $73,000, which it attained in the middle of March.A cynical economic forecast by the US Federal Reserve may have contributed to the price decline, with authorities bracing for slower growth, which experts are terming stagflation.
“We continue to see evidence of the Fed needing to be leaning back to a higher for longer policy outlook, despite investor calls for more accommodation,” said Joel Kruger, an executive at LMAX Group.
Despite the falling prices, several investors are eyeing new entry points to re-enter the market, with some predicting prices to fall to $50,000.
The analysts are also hinging their hypothesis on BTC’s cyclical nature of garnering lower interest in the summer months. Over a five-year window, buying Bitcoin in May and selling in September will leave traders with cumulative losses of -29%, compared to opening and closing trades in other months.
According to Rekt Capital, BTC is repeating 2016’s cyclical trend that saw the asset dip by nearly 20% after the halving event, hinting that the asset could sink even lower.
“I’m expecting a sell-off to the mid-to-low $50,000 region for BTC, which should be a buying opportunity,” said Lendn CIO John Glover.
Others refer to the decline as a speed bump to even higher prices in the coming months. Optimists are predicting an upward price swing following an upbeat economic forecast, with others eyeing “crowd capitulation” as key to a market bounce in the coming weeks.
