Since the price of bitcoin hit a record high of $65,000 in April, the bear market has been ruling bitcoin. A few weeks ago, the value of the cryptocurrency more than halved to the level of 30 thousand dollars, and a week ago it approached 40 thousand for a while.
The weekly Bitcoin cycle has been watched for a month. Weekend crashes sometimes start on Friday, but then on Sunday, the cryptocurrency regains its lost ground. Sometimes it happens that the decline starts on Sunday and deepens on Monday, but then on Tuesday and Wednesday it is a period of price recovery. It is worth noting that every 6-8 days, i.e. Saturday May 22, Friday May 28, Monday June 7, Friday June 11 and Sunday June 20, Bitcoin was paid for 33-34 thousand dollars after the declines. However, after a weak weekend in the middle of each subsequent week, the cryptocurrency returned to the $37-39K level.
The dynamics of the changes last week was especially high. On Monday, June 14, Bitcoin cost around $40K and is now worth $34,000. Josh Arnold, who analyzes the market for alpha, believes that Bitcoin has either already reached the bottom of the current correction or is very close to falling. The $29-30K level held more than once as support. I don’t know if we will see 30,000 again, but if it does, I will definitely buy cryptocurrency – the analyst revealed.
Josh Arnold asserts that the cryptocurrency market in recent months has been a veritable vortex of sentiment, and “coins” have experienced massive fluctuations in value based on a dynamically changing risk appetite, which can drop from extremely high in an instant to almost imperceptible.
Another analyst looking for alpha, Florian Gromis, makes a similar comment on the bitcoin pit, as did Arnold. It is believed to be just over $30,000. Bitcoin is very cheap, especially when you look at it in the next few years. Accordingly, the fund that I represent opened three positions in the bitcoin market with a low level of risk, the analyst said.
Florian Gromis notes that on the one hand, you can read opinions that Bitcoin is an asset of the future, and on the other hand, there are voices that suggest that it is a worthless speculative bubble. Therefore – he notes – it is worth asking yourself one question: “Why did people invest in something worthless for 10 years?”.
Between June 4 and June 10, Bank of America surveyed 224 institutional investors who manage a total of $667 billion. It turns out that most managers consider bitcoin a profitable asset class, but at the same time it is about 80 percent. Respondents believe that the cryptocurrency market will be subject to speculation in the coming months.
Paul Tudor Jones, a veteran of hedge fund management, is bullish on Bitcoin, because in his opinion it is a good hedge against inflation. For me, Bitcoin is a portfolio diversification tool. The only thing I know for sure is that I want at least 5%. In gold, 5 percent in bitcoin, 5 percent in cash and 5 percent in cash. In merchandise, he said.
American venture capital Tim Draper still believed in the bitcoin price prediction he released in mid-April 2018. At the time, he said that the cryptocurrency could reach $250,000 by 2022. Draper was famous for buying a massive batch of bitcoin in July 2014 and for his accurate prediction. At that time, the cryptocurrency would reach a price of $10,000 per “coin”.
Well-known institutional investor Rich Bernstein, who in an interview with CNBC outlined the rush to buy bitcoin and other cryptocurrencies, appears to be more cautious. Bubbles differ from speculation in that they bypass financial markets. For both cryptocurrencies and multi-tech stocks, people are talking about it even at cocktail parties, which could be a sign of a bubble forming, Berstein said.
Goldman Sachs is also on the side of paying attention to the risks that await cryptocurrency investors. Bank analysts are arguing with Bitcoin enthusiasts that for them it is “digital gold”.
“The argument that bitcoin and other cryptocurrencies are a digital version of gold does not give value to bitcoin and other altcoins, as gold itself is not a stable and reliable store of value. US stocks are a better way to hedge against inflation,” reads Goldman Sachs Report .
Bank experts discourage people from investing in bitcoins. “Due to the risk/return characteristics of bitcoin and the fact that it does not meet any of the criteria required to be a strategic asset class in a client’s investment portfolio, we do not recommend investing in cryptocurrencies,” the report continues.
The authors of the report equated Bitcoin with Dogecoin, the sixth largest cryptocurrency by market capitalization, with both “currencies” subject to speculation. Analysts mention that Dogecoin has seen an unprecedented increase this year and is an excellent example of a cryptocurrency variant. They cite the view that the Doge has no intrinsic value and that its price fluctuates rapidly when influencers, in particular Elon Musk, mention it on Twitter.
Goldman Sachs asserts that sharp price fluctuations discourage potential customers from cryptocurrencies. In addition, there are factors such as regulatory threats (government ban on cryptocurrency trading), potential cyber attacks and environmental problems caused by “coin” mining.
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