14.06.2022 – In Bitcoin, the battle for the $30,000 mark seems lost. This zone should have held better from the bulls’ point of view. Currently, a breakout to the downside is apparently underway – it is questionable whether the recovery will not come after all. However, we wonder where the impetus for this should come from in the current risk-off environment.
For about a month, the zone around 30,000 was fiercely contested. Now BTC – here the weekly chart – has slipped below the strongly pronounced support line. Below it, the abyss threatens.
Despite all this, just the analysis boutique Fundstrat spread a little hope. Co-founder Tom Lee said on CNBC that the bottom formation is now complete. Until the end of the year it will go rather sideways-upward. No crash thus.
Consolidation wave ahead
On the other hand, a star investor just provided a bearish note: Mike Novogratz believes that two-thirds of the roughly 1,900 hedge funds that invest in cryptos are doomed to fail in the wake of the current market slump. We add: Which would then likely trigger a wave of liquidations in Bitcoin and co. The founder and chief executive of Galaxy Digital Holdings said at the Piper Sandler Global Exchanges & Brokerage Conference in New York last Wednesday: “Volume will decline and hedge funds will have to restructure.” Novogratz saw the Federal Reserve’s Quantitative Tightening as the main reason for the bear market in BTC, which has been ongoing since November. The Terra blockchain crash last month was also a “catastrophic loss,” he said.
That leaves two other factlets: the U.S. state of New York is deliberating a ban on crypto mining. Russia, meanwhile, wants to allow cryptos as an investment but ban them as a means of payment. Mixed news, then, that is currently being discussed. We are curious to see whether Bitcoin will catch on – and will keep you up to date!
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