Bitcoin Price Volatility is Increasing as Crypto Selling Resumes
On Jun 09, 2022
The price of Bitcoin continued to fall this week also, dipping below the key level of $30,000 on Tuesday. This follows a sell-off that began last week and has seen the value of Bitcoin drop significantly. Analysts are divided on whether this is a temporary setback or the beginning of a longer-term decline for the cryptocurrency.
In the past week, the value of bitcoin has crashed twice, resulting in over $200 million worth of bitcoins being sold. This mass sell-off has caused many people to lose their investments, including notable venture capitalists and hedge fund managers. Coinsfera was able to obtain this information through different sources that tracked wallets associated with these investors and saw when they cashed out their holdings. While some investors are still bullish on bitcoin and its potential future, others have been discouraged by the volatility of the currency and have decided to sell off their holdings. The next few weeks should be very telling as to whether or not bitcoin will rebound from this latest crash.
In the past 8 months, the price of Bitcoin has plummeted from an all-time high of $68,982 to around $29,000. This drastic decrease in value is due to a number of factors including increasing concerns over a potential crackdown by governments and regulators around the world. Some investors are also selling their Bitcoins as they believe that the digital currency is in a bubble and will eventually crash. Despite these concerns, many experts still believe that Bitcoin and other cryptocurrencies have a bright future and will continue to grow in popularity.
Bitcoin prices have been on a downward trend this week as the closely watched consumer price index reading is expected to show that inflation has peaked. The reading for May is cooler than April’s numbers, which could lead some to interpret it as a sign that bitcoin has hit its ceiling in terms of value.
Hasegawa, a crypto market analyst at Bitbank, said
“How much a recent rate hike by the Fed in May could suppress prices is still uncertain, So it will be difficult to open new positions until Friday’s CPI announcement. In other words, bitcoin could continue to fluctuate sideways until then, but the market should brace for impact.”
Despite geopolitical tensions, the lingering threat of more complications from the Covid-19 pandemic, and high inflation rates, Bitcoin has so far struggled to maintain its reputation as a decentralized store of wealth. Many experts are attributing this to the cryptocurrency’s ongoing troubles with scalability. As volatility has increased and prices dropped, it becomes increasingly difficult for people to use Bitcoin as a day-to-day currency. Until these issues are resolved, it seems unlikely that Bitcoin will be able to reclaim its status as the top cryptocurrency. However, some experts are optimistic that recent changes in leadership may help lead the charge towards a more scalable Bitcoin.