Cryptocurrency investors hardly had a chance to breathe on June 22, because the price of Bitcoin (Bitcoin) It fell below $30,000 for the first time since January, Causing panic among inexperienced market participants who have not yet experienced a complete market cycle.
Although Bitcoin has been under increasing pressure from multiple sources since the beginning of May, the most recent round of selling is due to Chinese miners surrender Who was forced to shut down their business suddenly.
Data from Cointelegraph Markets Pro with Transaction view It shows that after falling to US$28,800, the price of Bitcoin rebounded above US$30,000, and the current transaction price is US$32,600.
After Brian Nelson, the current nominee of the Deputy Secretary of the Terrorism and Financial Crimes Department of the Treasury Department, made a comment, there was a strong rebound.Nelson said he wanted Prioritize the implementation of new regulations surrounding cryptocurrencies If he is confirmed.
China’s crackdown on miners triggered market turmoil
Élie Le Rest, partner of digital asset management company ExoAlpha, emphasized the pressure on Bitcoin and the entire cryptocurrency market. Le Rest told Cointelegraph, “In the past month, Chinese market participants have been selling in large quantities.”
Le Rest also pointed out that “the gray-scale unlocking schedule has led to greater selling pressure”, leading to some panic selling among inexperienced traders in the market.
Le Rest said,
“As newcomers to the cryptocurrency market see their profits and capital being wiped out by the sell-off, newcomers are taking on losses because they can no longer withstand such large negative fluctuations.”
Due to these pressures, Le Rest believes that the market may fluctuate between the “low-end of US$25,000 to US$35,000” in July, and the low volume that usually occurs in August may “accelerate this downward trend or establish an upward trend”.
David Lifchitz, Managing Partner and Chief Investment Officer of ExoAlpha, provided a favorable reason for today’s move. He stated that the activity seen in the market on June 22 “seems to have drawn a $29,000 boundary between BTC and Ethereum (Ethereum) Is $1,700, taking into account the rapid rebound. “
related: The phone went dead?Before falling below $32,000, Bitfinex shorts closed a batch of Bitcoin shorts
Having said that, Lifchitz warned against being cautious, because the volatility of the cryptocurrency market makes choosing the bottom extremely challenging.
“However, it is too early to tell if this is a “bottom” or just a temporary bottom. The lack of any upside catalysts (except for some contrarian oversold indicators) is still the biggest obstacle to a cryptocurrency rally…paging Mr. Musk, call Mr. Musk.”
Altcoins have double-digit losses
The altcoin market followed the lead of Bitcoin on June 22. As traders rushed for the safety of stablecoins, most tokens experienced double-digit losses.
The price of Ethereum rebounded along with the price of BTC, helping to eliminate the 15% correction and pushing the price back above $1,900.
Livepeer (LPT) rose by 15%, while the price of Celo (CELO) rose by 9%. These two tokens successfully got rid of market turmoil and achieved positive returns on the same day.
The overall cryptocurrency market value is now $1.303 trillion, and Bitcoin’s dominance rate is 47.1%.
The views and opinions expressed here only represent the views of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading action involves risk, and you should conduct your own research when making a decision.