What to expect from cryptocurrencies next week
What to expect from cryptocurrencies next week
Over the past seven days, the price of bitcoin dropped to $31 thousand, but then increased by 20% in less than a day. What will happen with digital assets in the coming days, and why the probability of reaching the main cryptocurrency level of $40 thousand has increased
This week, bitcoin showed a 20% increase. The price of the digital coin dropped to $31, thousand, but the next day it rose to $37.5 thousand. As of June 13, 10: 50 Moscow Time, the main cryptocurrency is trading at $35.3 thousand on the Binance crypto exchange. Experts of RBC-Crypto explained what is happening with cryptocurrency quotes now, and what to expect from digital assets in the coming days.
The path to $40k
The probability of bitcoin breaking through the level of $40 thousand increased against the background of the release of data on inflation in the United States, which reached 5% in annual terms, said the financial analyst of the crypto exchange Currency.com Mikhail Karkhalev. According to him, the situation developed in a similar way during the 2008 crisis, when inflation reached 5.6%, but even then rates remained low for almost 8 years. Accordingly, now such a scenario can be repeated: high inflation is only a temporary phenomenon, but zero or near-zero rates are with us for a long time, the analyst is sure.
"Low rates are an advantage and a positive for risky assets," Mikhail Karkhalev added.
The expert also recalled other positive news that can have a positive impact on the quotes. For example, the statement of the Basel Committee on Banking Supervision, which operates under the Bank for International Settlements. The regulator warned banking organizations that they must have sufficient reserves to cover possible losses from investing in bitcoin.
The analyst also advised to pay attention to the fact that Warren Buffett's company Berkshire Hathaway this week invested $500 million in a Brazilian neobank that works with cryptocurrencies. Before that, Buffett repeatedly criticized digital assets and called them gambling.
Market participants expect a new increase in the price of bitcoin, according to Viktor Pershikov, a leading analyst at 8848 Invest. According to him, this is indicated by the growth in the number of short positions on futures markets. The capitalization of the crypto market in the near future may return to growth after the accumulation of sufficient volume, the analyst is sure.
"Not excluding a local downward wave, the overall market situation is positive and I continue to expect a recovery in capitalization in the coming month," Viktor Pershikov added.
Altcoin Decline
Over the past two weeks, there has been a marked demand for bitcoin, according to a leading analyst at 8848 Invest. According to him, large players accumulate a position in the main cryptocurrency and withdraw it from crypto exchanges. Since there is a clear demand for buying bitcoin for altcoins, this puts pressure on alternative coins, the expert added.
Over the past week, Ethereum has fallen by 10%, and the exchange rate of Binance Coin and Cardano has fallen by 12%. Over the same period, the share of bitcoin in the market also increased, which, according to CoinGecko, is 42.7% as of May 13.