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Peter Davis

An writer at FOMOdrive

  • Jun 19, 2023
  • 2 min read

Bitcoin crashes below $26,000 - what's going on?

On Monday, Bitcoin experienced a sharp decline, dropping to its lowest point in two and a half months at under $25,800.

According to Bloomberg, a difficult period is ahead for Bitcoin.

The founder of BitMEX believes that Bitcoin will continue its rally in the autumn.

It is predicted by JPMorgan that there will be a high demand for Bitcoin until April 2024.

For the past seven weeks, there has been a decrease in investments in crypto funds.

The rate of the first cryptocurrency has dropped due to fears for the fate of the largest exchange Binance, as the US Securities and Exchange Commission (SEC) has filed 13 allegations against it and its CEO Changpeng Zhao for violating securities trading rules. These allegations include unregistered offerings and sales of BNB and BUSD tokens, Simple Earn and BNB Vault products, and staking.

Last week, CoinShares reported a decrease of $62 million in investments in crypto funds. This marks the seventh consecutive week of outflows. Bitcoin and Ethereum both saw a decrease of $3 million each, while funds that allow for shorting bitcoin experienced a decrease of $6 million.

CoinShares recently reported that the smart contract platform Tron had experienced $51 million in outflows over the course of a week. This was attributed to the closure of an offer by one of the providers.

Google Trends data shows that the amount of searches with the term "cryptocurrency" has dropped to its lowest point since the end of 2020. This decrease in interest could be attributed to Bitcoin's 10-week period of sideways trading.

The Block reported that the yearly average 30-day volatility of bitcoin has decreased from its usual 71% to 32%, making the stocks of Meta and Amazon more popular than digital gold.

According to Bloomberg strategist Mike McGlone, Bitcoin is unlikely to experience significant growth during the summer months. He does not rule out a sharp decline in the cryptocurrency market due to the end of the growth period and the stagnation of the stock market.

Arthur Hayes, the ex-CEO of the BitMEX exchange, predicted that Bitcoin will start to rally again at the end of the third quarter or the start of the fourth quarter. He pointed out that the US Federal Reserve's "unlimited printing of money" is driving people to become more interested in BTC.

JPMorgan predicts that retail demand for bitcoin will stay robust for approximately one year prior to the upcoming halving (scheduled to take place in April 2024). This event will double the cost of bitcoin mining to around $40,000, which will have a positive psychological impact as it reduces the income of miners.

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