Bitcoin started Tuesday morning with a decline. At one point, the coin traded at $21,141. According to the website for tracking the value of digital assets CoinMarketCap, over the past 24 hours, the lowest price of bitcoin reached $20,577, and the highest – $21,478.
Bitcoin has demonstrated confident positive dynamics until Tuesday, since June 18.
Altcoin Market
Bitcoin's main competitor, the Ethereum altcoin, also started Tuesday's trading session with a drop and at one point it had reached the $1,182 mark.
As for cryptocurrencies from the top 10 by capitalization, over the past 24 hours, all virtual assets, with the exception of a few stablecoins, have been declining in value. At the same time, Dogecoin (-6.77%) recorded the sharpest drop. According to the results of the past week, this cryptocurrency, on the contrary, showed the best results, soaring by 15.81%.
According to the world's largest aggregator of data on virtual assets CoinGecko, over the past day in the top 100 most capitalized digital assets, the Chiliz coin topped the list of leaders (+15.2%), and the first place in the drop list went to Synthetix Network Token (-13.0%).
Assessment of the market situation
Experts believe that the main reason for such a spectacular collapse of the crypto market in June is the loss of investors' appetite for risks. The weekly trading volumes of bitcoin and Ethereum fell below the levels of 2021.
At the same time, since the beginning of this year, the trading activity of the main altcoin has decreased significantly more than the indicators of the BTC. So, since January 2022, amid extreme market conditions, the outflow of users from the Ethereum network has increased by 28%.
Many analysts believe that it is not worth waiting for the recovery of the activity indicators of the leading cryptocurrencies in the near future, because the current bear market has become the most painful and protracted for the digital asset market in the entire history of their trading. At the same time, the key factors that led to such a deplorable state of cryptocurrencies, experts call a record increase in inflation and the tight monetary policy of the world's central banks.
For comparison, back in November 2021, the total capitalization of the virtual coin market exceeded the $3 trillion mark. Now this indicator balances at the level of $1 trillion.
An equally important proof of the seriousness of current market conditions was the decrease in the spot value of bitcoin below the selling price by 11.3%. Now traders are forced to sell their cryptocurrency at a significant loss. This situation in the virtual asset market is observed only for the fifth time since the launch of bitcoin in 2009.
What awaits bitcoin in the future?
The prolonged agony of the virtual asset market forces experts to make the most unexpected predictions about its future. Recently, analysts from Arcane Research suggested that the potential for reducing the value of bitcoin remains at $10,350.
Earlier, Jeffrey Gundlach, CEO of DoubleLine investment company, said that bitcoin could soon collapse to the $10,000 mark after a series of recent falls that made investors seriously doubt the stability of the cryptocurrency markets.
At the same time, some crypto experts continue to believe in the bright future of the first cryptocurrency. So, recently, a popular analyst and microblog presenter under the nickname Crypto Rover suggested that bitcoin has not yet completed growth and ahead of it is the fifth, final wave of positive movement.
A similar opinion is shared by the CEO of the software company XOR Strategy. So, recently, Aurelien Ohayon said that the BTC has reached a cyclical bottom and will soon make a rebound from the lows, starting a new growth cycle. If his assumption becomes a reality, Ohayon believes, by the end of June, the MTC can easily reach the level of $30,000.
Previously, well-known trader Peter Brandt predicted the return of bitcoin to a bullish trend when the BTC market dominance index will surely recover above 50%. At the moment, this indicator is balancing at 43.4%. It fell below the 40% level back in January 2022 and has not crossed the 50% mark since then.
Mike Novogratz, CEO of virtual asset management company Galaxy Digital, is also confident that the worst time for bitcoin is over. The analyst suggested that the main reason for the current sales in the crypto market was the liquidation, and not the deliberate refusal of traders from digital assets. According to Novogratz, the record volatility of cryptocurrencies eliminated too many orders, which triggered the recent collapse of the BTC below $18,000.
Despite all his optimism about the future of digital coins, Novogratz admits that a large-scale recession is coming to the crypto market, which will significantly hit the global economy.
Novogratz believes that bitcoin will be able to confidently turn to a bullish trend when the US Federal Reserve stops its tight monetary policy and a permanent increase in the key interest rate. According to the expert's calculations, the virtual asset market will remain in a state of recession for about 18 months.
