China’s assault on Bitcoin led to its worst month in years
Despite a minor recovery, BTC still shows weekly losses above 15%.
- Experts believe China’s continued crackdown on its crypto-mining market may be the source of the current volatility.
- For Bitcoin to maintain positive upward momentum, it needs to stay clear above its all-important support level of AU $ 40,500.
- For the sixth week in a row, many leading financial institutions continued to unload their BTC.
Crypto investors around the world have been on the edge of their seats for the past 72 odd hours thanks to Bitcoin exhibiting insane levels of volatility, bringing the first digital asset to a relatively low AU $ 38,700, albeit briefly. . Since then, BTC has made a strong comeback, with the currency’s value rising by more than 14% in a matter of hours. At the time of going to press, the flagship crypto is trade at AU $ 45,000.
To get a better overview of the situation, Finder spoke with Gregory Klumov, CEO of the stablecoin platform Stasis, who pointed out that there are many reasons for the continued decline in the market, explaining:
“The relentless Chinese crackdown on Bitcoin has hindered the dynamics of asset growth tremendously. Additionally, miners have started to hedge their assets and hash levels have dropped significantly. Finally, some market participants have started to exit the market. coin because they don’t see any real positive indicators to suggest future market growth. “
On a more technical note, Victor Kochetov, CEO of Malta-based cryptocurrency exchange Kyrrex, noted that according to his company’s research data, it is important that Bitcoin continues to stay above its level of very large support of US $ 40,500. Additionally, given the prevailing bear market, Kochetov believes there is a real chance that BTC will come down to around AU $ 28,000 – AU $ 30,000. “This level can be reached before July 5,” he added.
Finally, Kochetov believes that a price range of US $ 35,798 to US $ 36,146 is a good level of resistance for BTC. “By the 26th of this month, we are more likely to hit the 200% target brand level of this model, which is US $ 27,715,” he concluded, saying.
How to buy Bitcoin
Bitcoin posts worst quarterly performance since 2018
According to The data Made available by crypto data aggregator Skew, Bitcoin is poised to post its worst quarterly performance in nearly three years. Not only that, if the ongoing turbulence persists, it is estimated that BTC’s second quarter 2021 performance will be its second worst performance since the start of 2014.
On a technical note, we can see that for the current financial quarter, Bitcoin has lost almost 45% of its value, which is only 5% of the value reached in the first quarter of 2018, when the first crypto -mint has seen its price drop by 50%. % in just 90 days.
Is Institutional Interest in BTC Waning?
If the last CoinShares weekly report is to be believed, a growing list of institutional investors have continued to offload their Bitcoin for more than six consecutive weeks. As a result, a large number of BTC tracking investment products have experienced monetary outflows exceeding $ 89 in the past seven days.
That being said, the study notes that many multi-asset products have attracted massive cash inflows (estimated at A $ 13.25 million) as well as other projects like Polkadot (A $ 1.8 million) and Ripple (AU $ 1.06 million).
Interested in cryptocurrency? Learn more about the basics with our beginner’s guide to Bitcoin, dig deeper into learning about Ethereum, and see what blockchain can do with our simple guide to DeFi.
Disclosure: The author owns a range of cryptocurrencies at the time of writing
This information should not be construed as an endorsement of the cryptocurrency or any specific provider, service or offer. This is not a trade recommendation. Cryptocurrencies are speculative, complex, and carry significant risk – they are very volatile and sensitive to secondary activity. Performance is unpredictable and past performance is no guarantee of future performance. Consider your own situation and get your own advice before relying on this information. You should also verify the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the websites of relevant regulators before making any decisions. Finder, or the author, may have holdings in the cryptocurrencies discussed.