“Chain reaction of sales.” What might happen to the crypto market this week
Over the past week, the value of Bitcoin and altcoins has declined amid a negative news agenda. What to expect from the cryptocurrency market next and why quotations may continue to fall.
Over the past seven days, the value of Bitcoin has decreased by 16%. According to CoinGecko, the leading cryptocurrency is trading at $49 thousand. Altcoins have also dropped. For example, Ethereum fell 3% in a week. LATOKEN experts will try to explain what is happening with the crypto market and what may be expected from the quotations in the coming days.
The fall may continue
The Bitcoin rate fell below $50 thousand amid several negative news. On May 13, Tesla stopped selling electric vehicles in Bitcoins due to the non-environmentally friendly way of mining them. The head of the automaker, Elon Musk, said on Twitter that Tesla couldn’t harm the environment, so it will not accept cryptocurrency as payment until it starts mining with renewable energy sources.
Also, on the same day, it became known that the Department of Justice and the Internal Revenue Service of the United States began an investigation in relation to the Binance crypto exchange. Previously, the site has already been involved in investigating the Commodity Futures Trading Commission (CFTC). The regulator studied the company’s work for the admission of US residents to trade in crypto derivatives in the absence of an appropriate license.
Some analysts believe that Bitcoin is not an asset with a non-combustible amount or a certain threshold for falling. One negative event or several at once can lead to a chain reaction for the start of sales, and then the coin can fall up to $ 30 thousand. Such a drop can cause a reaction from investors who will understand that the states are starting a war against the crypto market.
Individual statements are unlikely to lead to this. This is more likely to be done by the decisions of states in the legislative sphere.
Bitcoin quotes can drop to $30–35 thousand, and large players are likely to start making large purchases of the coin.
Altcoins are trending
Altcoins will return to growth, as they are attractive to investors due to their prospects. The market is looking for investment opportunities, and now altcoins have become more interesting than Bitcoin, which has reduced the rate of value growth.
Most likely, this is not yet crypto winter and not a large-scale fall of the entire market, but a short-term correction.
Altcoins feel a little more confident than Bitcoin, as evidenced by the steadily declining level of dominance. Most likely, with rare exceptions, most of the popular altcoins are expecting a stable summer.
About LATOKEN
- Ranked #2 worldwide in the startup tokens primary market with 220+ IEO’s since 2017.
- Has over 2 mln registered users, over 1 mln Android app installs.
- Is in the TOP 10 of CoinGecko rank by the amount of token pairs and coins listed.
- VCTV, a live streaming panel with high-profile industry leaders, produced over 500 shows to advise traders and investors how to navigate the crypto world with discussions, news updates, and interviews.
- Advisory Board includes former CFOs from JP Morgan and Paypal.
Follow LATOKEN on social media to keep up with the latest news, and more!👇
✅ Website
✅ YouTube
LATOKEN crypto exchange does not provide any investment, tax, legal, or accounting advice. This article is written for informational purposes only. Like other assets, cryptocurrency is subject to market risk. Please do your own research and trade with caution.
