Bitcoin, the world’s largest cryptocurrency, has dropped nearly $32,000 after its April record. According to strategists watching the sell-off in cryptocurrencies, further declines could be imminent for Bitcoin.
According to an analyst from Oanda, further weakness in price could expose the $20,000 region as a downside target. Bitcoin fell by about 2 percent to $33,000 as of 11:23 p.m. in Hong Kong. Their losses in June are 10 percent so far.
What are the reasons?
Edward Moya, senior market analyst at Oanda, said that the largest cryptocurrency is “dangerously approaching the $30,000 level” amid rising regulatory fears in the US, and that “a breakout of $30,000 could see tremendous momentum selling.” Bitcoin has dropped nearly $32,000 from its April record due to billionaire Elon Musk’s criticism of the energy BTC needs and regulatory pressure in China.
The US authorities’ recovery of a high-profile Bitcoin ransom also shattered the notion that it was beyond government control, and it has been a matter of faith for some supporters of the cryptocurrency.
Evercore technical strategist Rich Ross and Michael Purves of Tallbacken Capital Advisors have marked the $20,000 area as a potential key level if Bitcoin breaks much lower than it currently is.
But some remain confident about the long-term outlook. For example, Michael Saylor’s firm MicroStrategy increased its bond sale from $400 million to $500 million to finance further Bitcoin purchases. MicroStrategy has emerged as one of the top publicly traded companies in cryptocurrencies.