On the morning of June 8, the cost of bitcoin dropped to $ 32.3 thousand. During the day, the main cryptocurrency fell by 10%, and its capitalization fell to $ 622 billion, according to CoinGecko. This came after billionaire and former US President Donald Trump criticized the digital coin and called it a scam. The businessman urged the US authorities to “very tightly” regulate the circulation of digital coins in the country, writes RBC Crypto.
Over the past week, more than $ 140 million have been withdrawn from bitcoin-based instruments, according to a report by CoinShares. Experts explained why institutional investors are losing interest in bitcoin and how this will affect the value of a digital coin.
Given the current information background, the fall in the bitcoin rate looks quite restrained, says Yuri Mazur, head of the data analysis department of CEX.IO Broker. According to him, in addition to Trump’s statement, the quotes were pressured by the news of the FBI’s interception of a virtual bitcoin wallet, which was used by the DarkSide hacker group after the attack on the Colonial Pipeline, as well as messages about the intentions of the US authorities to introduce stricter cryptocurrency regulation rules.
According to the analyst, it is too early to talk about a long-term correction, since from a technical point of view, to launch such a scenario, it is necessary for Bitcoin to fall below $ 30 thousand.In the meantime, the dynamics is similar to a price surge and a short-term reaction to information negative, the expert believes.
According to Mazur, there are two possible scenarios for the development of events. In the first case, Bitcoin will fluctuate for some time in the range of $ 35-40 thousand, until a critical mass of buyers is gathered. This will activate the bullish trend, the analyst said. The second scenario assumes a drop in the bitcoin rate to $ 20-25 thousand.
“At these levels, a rapid set of long positions may occur, which will push the quotes out and provoke the beginning of an upward trend,” the expert predicted.
Sergey Zhdanov, CEO of the EXMO crypto exchange, recalled that during the period of a strong bull market in March this year, Goldman Sachs announced the launch of new investment instruments based on bitcoin and other cryptocurrencies, since there was a high demand for such products from customers.
It is incorrect to talk about panic among institutions, since investors, despite the withdrawal of funds from products based on bitcoin, are simultaneously increasing investments in instruments based on altcoins, which has a positive effect on the crypto market, Zhdanov said. He cited the example of software maker MicroStrategy, which continues to ramp up investment in bitcoin.
On June 7, MicroStrategy announced a $ 400 million bond issue maturing in 2028. The company plans to use the funds raised to buy bitcoins. The software maker is now the largest cryptocurrency holder among public companies. MicroStrategy owns 92,000 bitcoins worth $ 3 billion, according to Bitcoin Treasuries
At the moment, there is a high probability of updating a new historical maximum for bitcoin, the CEO of the EXMO crypto exchange believes. In his opinion, the supercycle is not over yet, and the market is somewhere in the middle of growth, which should stop closer to 2023.