The downward correction of Bitcoin, which has been observed over the past few days, when the cryptocurrency was already “diving” below $9,000, makes everyone think about what will happen next. Analyst Cole Garner thinks that the cryptocurrency may reach $7,000, but there is a nuance. From his point of view, the market is likely to see such low levels of Bitcoin price for the last time and, accordingly, so attractive to entering the market.
Garner also believes that: “Technically, we’re still in a situation where the market is more focused on the growth of Bitcoin’s price.”
Find out more details about the fluctuations of the BTC course and the factors that influence it with the Born2Invest mobile app. Download for free our companion app and read the most important business news in the world.
There are several situational factors that influence the fluctuation of the Bitcoin course
Garner’s statement indicates that the current downturn in the cryptocurrency is due to a number of situational, but not fundamental factors. Earlier, it was mentioned that the influence of the third Bitcoin halving causes great shifts in the mining of the oldest cryptocurrency, as a result of which a number of weak players are forced to sell their stocks of cryptocurrency in order to stay “afloat”.
The third Bitcoin halving took place on May 11th. From that moment over the next four years, cryptocurrency miners will receive for each block only 6.25 Bitcoins. This means that, in anticipation of such a development, a number of mining companies have already abandoned the Bitcoin mining process, and this should reduce the competition of capacities for obtaining cryptocurrency. According to Alexandro de la Torre, vice president of the Poolin mining pool, those who left the mining business will not return to it, unless they upgrade their equipment to more modern ones.
Another event happened at the end of the week. June 26th was the date of execution of a large volume of options on Bitcoin, which are traded on the Chicago stock exchange of CME Group, worth a total of $290 million. In addition to this amount of funds, the exercise date was for option contracts on other markets, amounting to $385 million.
Traders had hoped that the cryptocurrency would fluctuate between $9,000 and $10,000, which was the range of the various setting prices at which they were going to buy Bitcoin. However, since Bitcoin was at the lower boundary of the corridor, around $9,100, most of the prices described in the contracts to buy the cryptocurrency were unprofitable – it was cheaper to buy Bitcoin directly in the market. This led to the fact that option contracts were unnecessary and traders started buying Bitcoin as well as futures for this cryptocurrency. Since the range of option setting prices was low, this did not lead to a large volatility of the oldest cryptocurrency.
The increase in the price of Bitcoin will bring back the optimism
Analyst Max Kaiser agrees with Garner on the upside potential of Bitcoin. Kaiser believes that the pessimism about the cryptocurrency will disappear along with the rise in its value. For example, he is sure that when a well-known Bitcoin critic and supporter of gold investments, economist Peter Schiff, sees the price of the cryptocurrency at $50,000 in the future, he will change his point of view.
DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.
This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.
First published in CLICK CHAIN, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.
The TopRanked.io Weekly Digest: What’s Hot in Affiliate Marketing [uMobix Affiliate Program Review]
This week, we're covering everything from hustle culture to spying on kids, making this affiliate digest look like it has...
Stanford University Returns Millions from FTX
Between November 2021 and May 2022, Bankman directed donations of more than €5.5 million from FTX Group to Stanford University....
Biova Project Launched an Equity Crowdfunding Campaign on Mamacrowd
Biova Project makes deals with players in large-scale distribution and production to recover, store, and transform unsold food, or food...
Novo Nordisk Plans to Open a Tech Headquarters in Spain
Novo Nordisk increased its profit by 42.5% in the first half of 2023, reaching 39,242 million Danish crowns (€5.26 million)....
Immorente Invest Maintains its Financial Stability
Although the occupancy rate has fallen from 92% to 90.2% compared with the end of 2022, the company expects this...
Business1 week ago
The TopRanked.io Weekly Digest: What’s Hot in Affiliate Marketing [CamSoda Affiliates Review]
Biotech2 weeks ago
Werfen Launches We Venture Capital to Invest in Diagnostic Companies
Crowdfunding4 days ago
Mamacrowd Launches Five Campaigns with November 10th Deadline
Impact Investing2 weeks ago
Why Sustainable Funds Are a Difficult Challenge