- As per Alex Kuptsikevich, a senior market analyst at FxPro, the recent surge of Bitcoin necessitates a period of consolidation after demonstrating its potential for growth.
- The total market value of cryptocurrencies reached $1.184 trillion, indicating a 10.8% increase over the past week, according to CoinMarketCap’s report.
As per Alex Kuptsikevich, a senior market analyst at FxPro, the recent surge of Bitcoin necessitates a period of consolidation after demonstrating its potential for growth. The total market value of cryptocurrencies reached $1.184 trillion, indicating a 10.8% increase over the past week, according to CoinMarketCap’s report.
Bitcoin saw a notable increase of 15%, closing at $30.4K, while Ethereum experienced a gain of 9.5% and reached $1890.
Nevertheless, Kuptsikevich suggests that the recent upward momentum faded over the weekend, causing Bitcoin’s price to decline to $30.3K during early Monday trading.
According to Kuptsikevich, Bitcoin reached its earlier highs around $31.4K in early June but was unable to sustain the rally. Over the weekend, the momentum faded, causing the price to drop back to $30.3K during Monday’s early trading.
The rally was primarily attributed to the anticipation of launching spot bitcoin ETFs, which would enable institutional investors to access the leading cryptocurrency. Additionally, technical factors such as breaking through the 50-day moving average resistance and consolidating above the upper boundary of the descending channel contributed to Bitcoin’s upward movement, as noted by the analyst.
Despite these positive indicators, Kuptsikevich believes Bitcoin needs a cooling-off period in the near future. He suggests that while a short-term break is necessary, Bitcoin has a higher probability of reaching the upper boundary at $34.5K within a month than reaching the lower boundary at $26.1K. While the long-term outlook for Bitcoin remains optimistic, Kuptsikevich expects the market to stabilize in the coming days.
Mark Yusko, the founder of Morgan Creek Capital, sees the recent rise in Bitcoin and other cryptocurrencies as the beginning of a new bullish cycle that will continue until the next halving in spring. Yusko believes that Bitcoin will eventually surpass gold as a store of value.
Bitwise CEO Matt Haugan suggests that the cryptocurrency market is entering a multi-year bull cycle due to increasing institutional investments in digital assets.
Hugh Hendry, the founder of hedge fund Eclectica Asset Management, argues that rising interest rates in major economies will lead to unfavorable macroeconomic conditions, which will be beneficial for Bitcoin. He envisions the BTC exchange rate tripling in such a scenario.
In other news, German software developer SAP has initiated a pilot project using the Circle USDC and EUROC stablecoins on the Ethereum blockchain for international payments.
Bitcoin Cash, one of the oldest altcoins, experienced an 80% surge last week, supported by an endorsement from the crypto exchange EDX Markets.
As Bitcoin takes a pause, the cryptocurrency market awaits the next phase of its journey, considering both technical factors and the broader macroeconomic landscape.
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