On April 17, the Bitcoin (BTC) exchange rate began to fall. It dropped 9% in a week to close at $27,590, Vladislav Antonov, a financial analyst at BitRiver, said. On April 25, the expert explained to Izvestia the reasons for the decline in BTC and spoke about the immediate prospects.
“Bearish sentiment has returned to the cryptocurrency market again and brought a lot of fears to novice investors. The price of bitcoin fell below $30 thousand after Gary Gensler (head of the SEC) woke up the “bears” (bears are called traders betting on a future decline in quotes), caused a technical correction. On April 18, he again hinted that cryptocurrencies should adapt to existing US legislation and warned of the possible prosecution of unregistered bitcoin exchanges, ”the expert said.
At the same time, the analyst clarified that such fluctuations are generally typical for the cryptocurrency market. BTC and other cryptocurrencies constantly show ups and downs, so investors need to be prepared for unexpected changes in the market, Antonov explained.
Speaking about the prospects in the coming weeks, the analyst clarified that while American companies publish reports for the first quarter, one should not expect a serious strengthening of bitcoin. According to him, the focus of market participants are the results of the meeting of the US Federal Reserve System (FRS), scheduled for May 3. Investors believe that a rate hike of 25 basis points to 5.25% is possible. However, the very expectation of such changes “may cause nervousness among market participants and increase volatility on stock exchanges,” the expert believes.
“If the S&P500 index is subject to sharp fluctuations, then this will definitely affect the dynamics of bitcoin. We follow the dynamics of the yield of government bonds (affects the dollar index) and the press conference [главы ФРС Джерома] Powell, which should take place after the Fed meeting. I tend to believe that bitcoin will keep moving in the range of $26,500 – $31 thousand until June 1, then the rally will resume with renewed vigor. The target zone is between $34,000 and $35,000. If the $26,500 support fails, then the sellers will head for $25,250. I don’t consider a price drop below $24,750,” Antonov predicted.
He also said that there is turmoil in the United States of America due to the unclear situation with the public debt.
“The cost of insurance against US government default has risen in recent days to a new high. The US national debt has exceeded $31.7 trillion. Investors fear that the world’s largest economy may not meet its financial obligations. The risks of a technical default are growing,” the analyst said.
With problems with servicing the public debt, the demand for cryptocurrency and gold will increase as protective assets, he added.
“In general, despite all these uncertainties and changes in the global market, we are confident that Bitcoin and other cryptocurrencies will remain attractive, especially against the backdrop of the creation of their own currencies by the BRICS countries. Therefore, for real investors who know how to cope with difficulties, the cryptocurrency market will always remain interesting and profitable,” Antonov concluded.
According to the data site CoinDesk, at 18:05 Moscow time on April 25, bitcoin reached $27,296.
Earlier, on April 19, it was reported that the Regional Public Center for Internet Technologies conducted a survey and found out that 85% of respondents know about bitcoin. At the same time, more than half of those surveyed consider investing in cryptocurrency risky. No more than 5% of those who answered the questions used cryptocurrency.
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