Inflation, rise of major central bank rates due to inflation, continuation of geopolitical tensions on a global scale, the the market climate is more uncertain than ever for dangerous assets. And in the crypto market. A climate that leads some people to believe that it is almost inevitable that Bitcoin will be repaid to the $ 20,000 threshold.
Bitcoin in range for 2 weeks
After the violent fall in mid – May, the price of Bitcoin has entered a waiting phase. As shown in the chart below, taken from the Coinmarketcap platform, Bitcoin shipped between $ 29,000 and $ 31,000.
Once again, Bitcoin seems to be looking for its trend. Since last November, unfortunately this search for a trend has steadily declined steadily. As of this writing, Bitcoin is trading at $ 29,016. 2.01% decrease over the last 24 hours. Price level that remains above all else 58% lower than record high. ATH recorded nearly $ 69,000 last November.
Inflation: the pet peeve of Bitcoin and the crypto market!
In recent weeks, dangerous markets have struggled. And the trend seems to be even more visible in the crypto market. Blame the monetary policy pursued by the American central bank: the EDF. In fact, over the past few weeks, there have been successive rate increases. The purpose of these increases? It succeeds in curbing inflation. But this has visible consequences for the markets at risk, as liquidity inflows are now reduced.
At 4% in June 2021, over a one – year slippage period, US inflation is now close to 6%. Despite the first steps of it rate increase from the Fed, the inflation dynamics seem to continue, although it has fallen slightly in recent weeks. Because it is this fall that the crypto market will depend.
Bitcoin at $ 20,000: Inevitable?
For many cryptocurrencies, if the price of Bitcoin fell to the $ 20,000 level, the threshold would be compounded ideal entry point. In order to preserve the asset in the long run. This $ 20,000 point would bring Bitcoin close to the highs reached at the end of 2017 during the first blast around the project. In case you want to buy Bitcoin, it is recommended to do so on a trusted platform like Capital.com (CFD) or Crypto.com.
However, if we focus on Bitcoin price analysis in monthly data, it is clear that the various stages of decline do not lead to the signal to return to its former ATH. And this, for more than 12 years. In other words, these facts contradict the hypothesis that Bitcoin will inevitably return to the $ 20,000 threshold. However, this raw data should be taken with a pinch of salt, as market contexts are no longer the same.
Either way, if achieved, this point could be a level that could begin to reverse a trend. Currently, the Crypto Fear & Greed indicator continues to show in extreme fear. At 12/100, more or less the trend of the last two weeks.
Our social networks: