Following it, popular altcoins also decreased in price.
Experts warn of a possible decrease in the value of bitcoin in the event of negative news or fixing its rate below $ 50 thousand or even down to 15,000 usd.
In the worst-case scenario , in their opinion, the value of the main token may fall to $ 15-18 thousand .
In the correction zone.
After two sharp drops on April 18 and 23, the bitcoin rate dropped to $ 47.7 thousand.
Over the week, the main cryptocurrency fell by 25% .
As of 17:30 EU time, its price is at $ 49 thousand. Together with bitcoin, rates of other popular digital assets have also dropped: over the past seven days, Ripple quotes have decreased by 45%, Polkadot – by 39%, Cardano – by 33%, Bitcoin cash by 32%, Chainlink by 30%, and Litecoin by 29% .
The main reason for the correction in the price of bitcoin was a number of historical highs that preceded this, according to the leading strategist.
The announcement by the US President about plans to significantly increase the capital gains tax for wealthy citizens could also be an incentive for investors to take profits before innovations.
Prior to this, the rate of the cryptocurrency was negatively affected by a decrease in performance in the bitcoin network due to interruptions in the supply of electricity in the leading region for miners in China.
A negative background around the market, among other things, could have been created by a fraud on the Thodex crypto exchange, accompanied by the escape of the head of the company and the suspension of trading by an organization whose daily turnover was about $ 750 million.
As a result, almost 400 thousand people cannot access their accounts.
At the same time, right before these events, the management of the exchange attracted new participants with the help of a promise to receive 150 DOGE tokens for free for registration.
Many analysts also associate the fall in the value of bitcoin below $ 50 thousand with the end of the excitement that arose against the background of the placement of shares of the crypto exchange Coinbase on Nasdaq , that is, the company’s entry into the stock market with the sale of existing securities to shareholders, said Gleb Kostarev, director of Binance in Russia and the CIS.
The expert agrees that the announcement of the US President on changes in the country’s tax legislation, due to which the market reacted with premature profit-taking, also had an impact.
In addition, in the past week, some big players have created new exchange-traded funds (ETFs), which tend to make money on the fall in the bitcoin price .
For example, Morgan Stanley launched two new funds for the main cryptocurrency.
In two weeks, one of them attracted $ 29.4 million from 322 clients.
At the same time, the SEC (the US Securities and Exchange Commission) is awaiting eight applications for the creation of such funds, and the Securities Commission in Ontario has already approved the launch of two such ETFs on Ethereum.
The CEO of the Swiss financial company Newcent Vladimir Smetanin believes that the main reason for the fall in bitcoin quotes is the extinction of investor interest and a sharp decline in new investments against the background of the absence of “strong” news that can affect the cryptocurrency market.
He expects significant growth, for example, if Ripple wins in court with the US Securities Commission, the expert said.
However, the head of the broker J2TX Artyom Moiseev is sure that a correction in the cryptocurrency market has been brewing for a long time.
The capitalization of digital assets has many times exceeded the use of tokens in the real economy .
The previous growth was caused, among other things, by speculative operations and excessively large margin positions of market participants, their closure could cause the current fall in exchange rates.
Bears at the ready..
The level of $ 50 thousand is psychologically important for investors, but before the weekly chart of bitcoin fixes below this mark, it is premature to talk about a protracted price correction, says Yuri Mazur, head of the data analysis department of the crypto broker CEX.IO Broker.
Nevertheless, in the short term, the cryptocurrency rate may drop to $ 45.2.
At the same time, while all price movements on the crypto market fit into the expert’s moderate forecast: bitcoin will rise in price to $ 70-75 thousand, and ethereum – to $ 3 thousand.
However, the long-term presence of the digital currency below $ 50 thousand will indicate a shift in risks towards a bearish trend and will entail an adjustment of expectations , noted Yuri Mazur.
A slowdown in the growth of bitcoin and its halt in the region of $ 58-65 thousand may reverse the trend in the opposite direction , warns Janis Kivkulis from Exante.
Then the price of the cryptocurrency can drop to $ 44 thousand, the lows of the February correction, or even lower. The next few weeks will show whether the bearish sentiment will become the main one in the market .