The historical decline of bitcoin below $ 30,000; What do the experts say?

The price of bitcoin fell below $ 30,000 this morning after almost 300 days; But what are the main reasons for this historic downturn in the digital currency market and what future do price experts predict?

According to Quinn Desk, a few days after the Federal Reserve decided to raise bank interest rates faster and financial investors’ fears of recession, the digital currency market and stocks fell to record lows and the price of bitcoin fell below 290 below 30 $ 000.

The lowest price of bitcoin of 29,700 dollars, which was registered in the last 24 hours, is the lowest price of this digital currency in 2022 and in the last 10 months. Bitcoin last survived below $ 30,000 on July 20, 2021; When a new uptrend started after falling to $ 29,300.

The historical decline of bitcoin below $ 30,000;  What do the experts say?
Bitcoin price chart; 1 day view of the bitcoin / dollar market.

What do the experts say?

Edward Moya, a financial market analyst at the Oanda Trading Institute, says:

The recent collapse of digital currencies is due entirely to growing pressure on the stock market of technology companies and has little to do with the space of digital currencies. The current decline could push bitcoin to $ 28,500, and some long-term buyers may enter the scene once they reach that level. The positive and long-term fundamentals of bitcoin remain strong, but it will take a long time to return to the previous record price level ($ 69,000). After the end of the bloodbath on Wall Street (US stock exchange) bitcoin may begin a new period of stabilization. For now, however, many analysts are selling their assets for fear of falling prices (Panic-Selling).

Stephen McClurg, senior investment director and co-founder of Valkyrie, said:

If the US Federal Reserve continues to raise interest rates until June and July (June and July), the market is likely to fall in the summer. With the US midterm elections in November this year, I expect the US Federal Reserve to decide at its September meeting to halt raising or even lowering interest rates. This can happen [در پایان تابستان] Create a spark in the market and make prices come back again.

“Jeff Dorman, director of investment at Arca, which invests in digital currencies, says:”

This decline happened because the backwardness of buyers and their refusal to enter the market has reached its peak and we are yet to see what will bring them back to the market; Of course, if there is something that can convince them to return.

The US Federal Reserve has decided to raise interest rates by 0.5% this month and is likely to do the same at next June’s meeting.

As you know, the collapse of bitcoin these days is only part of a huge downturn in financial markets around the world. All three major stock indices fell. The S&P 500, one of them, fell 3.2% to 3,991. The industrial indices Nasdaq and Dow Jones are down 4.5% and 2% to 11,623 and 32,245, respectively.

During this record low, the correlation between the price of bitcoin and the Nasdaq stock index also reached an all-time high of 80%, indicating high coordination between digital currencies and the stock market.

The historical decline of the Bitcoin post below $ 30,000; What do the experts say? appeared first for currency.

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