Is the Growth Cycle Complete? What to Expect from Cryptocurrencies at the End of June
Over the past few days, Bitcoin has fallen in price by 10%. Now the digital coin is trading at about $35,5 thousand. When can the leading cryptocurrency restore its positions and overcome the $40 thousand mark in the coming days? LATOKEN experts want to figure it out.
Last week, the value of bitcoin rose above $40 thousand, but the coin failed to gain a foothold at this level. Over the past few days, the value of the leading cryptocurrency has been declining.
Altcoins also fell in price over the same period. For example, Ethereum fell in price by almost 10% in three days, while Cardano fell in price by 7%.
Buyers are gaining positions
We can say that the market maintains a balance of supply and demand at the moment, no one is in a hurry to sell, which supports Bitcoin, but buyers are timidly gaining positions. The situation when the forces of buyers and sellers are in equilibrium is called an efficient market or a sideways market.
The price may still walk for some time in the range from $32 thousand to $40 thousand that cannot be called either growth or decline.
To determine the further trend, the markets lack any positive or negative information. The market is waiting for the actions of prominent participants, who will either begin to aggressively buy Bitcoin or get rid of it. The market needs a trigger that will determine further movement. At the current moment, the market remains in balance.
Market pressure may increase
The price of Bitcoin began to decline sharply after the FED announced that the rise in inflation in the United States could cause the regulator to raise the rate.
In the coming days, a rebound is possible after the reaction to the regulator’s statements, and Bitcoin may grow to $41–42 thousand.
But this will most likely be a short-term growth since nothing is fundamentally changing for the cryptocurrency market — central banks and governments of developed countries continue to demonstrate a negative attitude towards digital assets and an intention to strengthen market regulation.
Some experts believe that the growth cycle for the crypto market is over, as the attack on cryptocurrencies by the largest states (China, USA, UK, and others) might be just beginning. In the future, the pressure on the crypto market might only increase, but of course, we can’t be sure of this.
The reason for the decline in altcoins is a decrease in investors’ appetite for over-risk. Altcoins, as in the previous growth cycles of the cryptocurrency market, have fulfilled their mission today, gave a new hype, and also helped a certain circle of people get rich.
Now the bulk of investors in altcoins and hype projects are shifting capital to fiat and other much less risky assets. This does not mean that growth has stopped.
Some altcoins may show growth, but most likely it’s useless to wait for the altcoin season in the near future. Many experts believe that alternative digital coins are highly dependent on the Bitcoin rate, and its rise in the previous week triggered an outflow of capital from altcoins.
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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.