In the spring, Bitcoin for the first time reached a maximum at around $ 64.3 thousand, and after that it went down and fell to $ 30 thousand. The last time the coin was traded at this level was in January of this year. In May, the total cryptocurrency market capitalization also reached its maximum – $ 2.55 trillion, according to CoinGecko. As of June 1, 12:30 Moscow time, it is $ 1.7 trillion, bitcoin is trading at $ 36 thousand, writes RBC Crypto.
Experts have given a forecast as to what will happen to the cryptocurrency over the next three months.
Continued growth
A decrease in quotes of this scale was extremely necessary for the crypto market, says Mikhail Karkhalev, financial analyst at Currency.com crypto exchange. According to him, the correction cooled the market and made it possible to buy bitcoin and altcoins cheaper. Judging by the volume of unused stablecoins on exchanges and the volume of withdrawal of bitcoins from exchanges, everything points to a gradual recovery and continued growth, the analyst explained.
In the current bull cycle, Ethereum has surpassed Bitcoin in terms of attractiveness, Mikhail Karkhalev is sure. He argues that the reason for this is the development of industries such as DeFi and NFT, as Ethereum-based projects automatically raise the popularity of the blockchain on which they were developed. Ethereum also began to be used as a hedge against the massive collapse of the altcoin market, which may support its price in the future.
“It is faster to withdraw altcoins to Ethereum than to another coin, which increases demand for the main altcoin in terms of capitalization, but decreases on DeFi and NFT. This is partly why many new coins dropped by 60-80%, and Ethereum by 50%, ”the analyst explained.
The dynamics of the Ethereum exchange rate may be positively influenced by the upcoming London update, which is scheduled to be released in July, but this is not an update from which one should expect a significant impact, said Nikita Soshnikov, director of the Alfacash cryptocurrency exchange service.
The London update will completely change the fee calculation mechanism. Part of the commissions that miners are currently receiving as a reward will be burned to reduce their number in circulation. This method is used to combat inflation and to increase the value of cryptocurrencies.
Capitalization recovery
In the summer, the crypto market may begin to recover its capitalization, which will increase the price of bitcoin to the level of $ 50-52 thousand, and Ethereum to the level of $ 3.6 thousand, leading analyst at 8848 Invest Viktor Pershikov predicted. According to him, the summer period is usually characterized by low volatility, so there should not be any sharp movements in the market.
In the coming months, one should not expect updates to historical highs, since, in general, bitcoin remains in a wide sideways trend, at which the level of $ 30 thousand will act as its lower limit, the analyst noted. Viktor Pershikov expects higher recovery rates from Ethereum than from the main cryptocurrency, since altcoin is actively developing in terms of technology and remains the leader in the platform token sector, while Bitcoin is under pressure from fundamental circumstances, including the risks of new negative political and economic statements.
Other altcoins will also be in demand, as the DeFi sector tokens have fallen excessively, added Viktor Pershikov. In his opinion, this makes them interesting to buy.
Lateral movement
On the crypto market, various scenarios are possible, however, the most realistic in the current conditions is sideways movement, the director of the cryptocurrency exchange service Alfacash predicted. According to him, now there are no prerequisites for the return of bitcoin to the record levels reached this year, but there are also no preconditions for the coin to fall below $ 30 thousand, primarily because there is no flight of institutional capital.
Large investors who entered the crypto market over the past year do not sell digital assets, but, on the contrary, increase their investments in them, the expert says. In his opinion, this speaks of the optimistic view of institutions on the prospects for the development of the cryptocurrency market. Until the fall, serious movements are unlikely to occur, bitcoin will not fall below $ 30 thousand, and will not rise in price above $ 45 thousand, Nikita Soshnikov is sure. He predicts that the coin will fluctuate in the range of $ 32-38.5 thousand.
Earlier, large investors took advantage of the drop in bitcoin quotes to $ 30 thousand, which occurred on May 19. During the collapse of the cryptocurrency market, “whales” bought 77 thousand bitcoins worth just over $ 3 billion. In just a day, more than 175 thousand bitcoins worth $ 7 billion were withdrawn from cryptocurrency exchanges, which became the largest outflow of digital coins over the past year.
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